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America’s rural communities are the backbone of the country. In Dayton, Ohio and surrounding counties, the United States Department of Agriculture (USDA) has a great home loan program that is designed to promote rural housing and growth by offering “NO MONEY DOWN HOME LOANS“.
USDA Loans Around Dayton
Montgomery County and Dayton, Ohio, has lots of rural homes that are eligible for USDA Home Loans. These are federally guaranteed home loans that can make it easier for low to moderate income families to purchase a house in rural areas.
The USDA loan program gives lenders a 90% loan guarantee which makes it much easier for borrowers.
USDA Loan Eligibility
Eligibility for the USDA loan guarantee program is not difficult, but it requires that certain criteria be met. Working with our team at Franklin Mortgage Solutions, we will help to meet those USDA guidelines.
- Meet income eligibility – To qualify, there are specific income guides that need to be met.
- Owner occupied only – You can not use the money from a USDA loan for an investment property.
- Be a US citizen, non-citizen national or Qualified Alien
- Be able to legally incur the debt
- Not have been suspended from federal programs
- Show a willingness to meet all of the credit obligations
- Buy a property that meets the criteria set forth by the United States Department of Agriculture (USDA)
Not too complex, but it requires a professional hand to guide the loan through. That’s where Franklin Mortgage Solutions knowledge of USDA home loan programs & years of processing USDA loans come in.
USDA Loan Eligibility After A Bankruptcy
If in the past you have filed a Chapter 7 bankruptcy, the bankruptcy must have been discharged at least 3 years prior to becoming eligible for a USDA home loan.
Borrowers must be in a Chapter 13 bankruptcy for a minimum of 12 months, with documentation of 12 months of on time payments and a letter of authorization from the bankruptcy trustee authorizing you to enter into new debt.
In order to qualify for a USDA home loan after filing a Chapter 13 bankruptcy, additional documentation may be requested/required stating that the reason for the the Chapter 13 filing was due to extenuating circumstances beyond the borrower’s control, temporary in nature and not likely to re-occur.
USDA Loan Eligibility After A Foreclosure
The bankruptcy guidelines mentioned above also apply to home foreclosures and require a 3 year waiting period in order to qualify for a USDA home loan.
Dayton USDA Home Loans
A loan guarantee is an excellent way to get the home that you want without having to go through many of the traditional loan concerns. The federal guarantee is an important way to get a wonderful home while having the backing of the full faith and credit of the United States.
In the Dayton area, USDA Home Loans should only be handled by an experienced and qualified firm that has the skills and team to help you put the paperwork together. If you are interested in a USDA loan, please contact Franklin Mortgage Solutions at (877) 743-1200
USDA Home Loan Credit Score
There is no minimum credit score set by the USDA for a loan guarantee, but many lenders require a 640 score or better to get a loan. That would be an average of the three credit reporting agencies, since often they have different scores for the same person.
Qualifying USDA Income Levels
There are specific income levels that need to be met in order to qualify for a USDA home loan. Again, not too low, so there are lots of people who qualify for USDA loans.
Dayton, OH MSA
Dayton, OH HUD Metro FMR Area
STATE: OHIO ——————- A J U S T E D I N C O M E L I M I T S ——————
P R O G R A M
(Persons) 1 2 3 4 5 6 7 8
VERY LOW INCOME $22,200 $25,350 $28,500 $31,650 $34,200 $36,750 $39,250 $41,800
LOW INCOME $35,450 $40,500 $45,600 $50,650 $54,700 $58,750 $62,800 $66,850
MOD.INC-GUAR.LOAN $75,650 $75,650 $75,650 $75,650 $99,850 $99,850 $99,850 $99,850
Not only can you purchase a home, but the money can also be used to fix up the property, pay for sewer, water, etc. connection fees, real estate taxes that are due, and much more.
Working With A USDA Approved Lender
Franklin Mortgage Solutions is an approved USDA Home Loan provider. As an approved lender in Ohio, we are able to expedite your paperwork, help you figure out how much home you can afford, and get you started on the process of home ownership. If the home you are interested in does not qualify for a USDA loan, you may want to look at qualifying for an Conventional Loan, FHA Loan or a VA Loan if you are active U.S. Military o have previously served in the armed forces.