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USDA Loan Eligibility

Flexible underwriting and approval guidelines to help promote home ownership in rural communities
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Streamline Refinance

No appraisal, unlimited LTV and very limited documentation requirements when lowering your current rate.
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Buying A Home

100% financing available with the government insured USDA Rural Home Loan Program.
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Searcy, Arkansas USDA Guaranteed Home Loans

USDA Mortgage Loan Eligibility

In order to be eligible, the home must be located in a designated rural area.

A couple of the main eligibility requirements are as listed below:

  • An adequate and steady income of up to 115% of the adjusted median income (AMI).
  • Decent credit history
  • Unable to qualify for a conventional mortgage loan
  • No delinquencies on any tax or non-tax debts and there can not be any judgement liens against the applicant's property for any debt owed to the government

The Rural Development has a method of determining a household's income by using two formulas.

Two Step Formula:

1.) The burden of principal, interest, taxes, and insurance (PITI) must be 29% less than the gross monthly income.

2.) The total monthly debts must be 41% or less than the gross monthly income.

The USDA is not limited to first-time homebuyers. The loans were set up to assist eligible homebuyers despite the fact that they own a home before or not.

Benefits Of Arkansas USDA Mortgages

There are many great benefits as well to a USDA Mortgage Loan, there are no credit or income verification since the loan is insured by the US Department of Agriculture, with this being so the borrowers have an advantage over other conventional loan options. The USDA home loan program offers:

  • Zero Down Payment
  • Low closing costs
  • Funds to be used on repairs(renovations)
  • Lower mortgage bills
  • Up to 100% Financing
  • No PMI
  • Energy Efficient Homes (lower utility bills)

With a lower interest rate and lower monthly mortgage bills, USDA borrowers can apply funds saved on other essential household expenses.

The USDA Rural Home Loan Program gives borrowers the ability to finance closing costs into the loan itself and the underwriting guidelines are more relaxed and credit ratings are not as essential.

The USDA Guaranteed Home Loan is the only federal homeownership program that actually is able to assist low-income households in rural areas.

You can check to see if your Searcy loan is eligible for the Arkansas USDA Rural Home Loan Program CLICKING HERE, or feel free to call our USDA Mortgage Hotline at 888-664-8375 to speak with an approved USDA Mortgage Lender in Searcy who specializes in Rural Home Loans.