Homebuyers employed full-time must demonstrate at least one year of solid employment while those self-employed must show two years. Credit scores are also important, requiring an applicant’s score to be 640 or above. The dwelling is also considered in the application process. Homes must be on a reasonable-sized lot consistent with the surrounding neighborhood. There is no set purchase price or mortgage limit.

The Rural Development program aims to help low-income rural families find adequate housing. Since the program benefits those people who need it most, it is essential to make sure only the neediest homebuyers access this program. Because the USDA programs subsidize mortgages for low-income citizens, the homebuyer’s income must not exceed certain limits depending on where they live. The income limits also vary based on household size. The lending institution administering the loan can verify income amounts during the application process. The income limits are based upon 115% of the median income in the local area.

Some areas in more densely populated states may seem to be more suburban than rural. Don’t assume the location of your home is not eligible or not until you go through the entire development eligibility process. You may be surprised to see some of the eligible regions are relatively close to major cities. Refer to the USDA Rural Development eligibility website and enter your address. The map will indicate if the home location fits within an eligible area.

• Home Condition to Qualify for USDA
  Houses eligible for the USDA Rural Development program home loans must be in a liveable condition, but can still need some work. The USDA also restricts the size of the property to be less than 2,000 square feet in size and be a primary residence. This means the home can not be used for rental or income property. These requirements apply to single-family houses; the USDA offers different programs for multi-family housing. If the house does need repairs, the USDA provides a repair and upgrade loan program offering up to $27,500 towards repairs in the home. In some instances, loans can be combined with grants to complete the necessary work.