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USDA Loan Program Frequently Asked Questions

USDA loan program Questions and Answers

How much cash will I need to purchase a home with the USDA loan program?
Most likely you can  purchase a home with little or no cash contribution.

Do income limits apply to this loan?
Yes. Your income should within the allowable income limit guideline for the USDA loan program.

Can I purchase a home anywhere with this program
No. This program is limited to USDA eligible areas.

What kind of home can I purchase with this program?
With this program, you can purchase a new or proposed home construction, an existing home (including qualifying foreclosures and REOs), a modular home, a condominium (if it meets the standards for Fannie Mae, Freddie Mac, VA, or FHA), a townhouse ( Same as condo – a town home must have provisions for maintenance such as HOA) or a new manufactured home. For new and existing homes with private well water, a water qualify test must be performed to ensure it meets local and state codes

How much will I be allowed to borrow?
The amount you can borrow will be determined by your lender and will be based on your repayment ability and the appraised value of the home.

What will my monthly mortgage payments be?
Monthly payments for a mortgage include principal, interest and the monthly cost of real estate taxes and insurance.  Your lender will provide you with an estimate for your monthly mortgage payments based on the home you want to purchase.

Is there monthly mortgage insurance?
No.  however there is a one-time guarantee fee charged by USDA that can always be financed into the loan.

What is the maximum loan amount?
There is no maximum except as limited by the appraisal and your repayment ability.

I do not use credit.  Will this prevent me from qualifying for the loan?
Your lender will ultimately make the decision whether or not you qualify for this program.  Lenders are permitted to use non-traditional credit reports or verify creditworthiness with alternative types of credit such as utility payment records, rental payments, insurance payments, cable television, telephone bills, child care payments etc…

In addition to the home purchase, what else can be financed into the loan?
Closing costs and repairs can be financed up to the appraised value.

Can a self employed person qualify for this program?
Yes, you must provide two years earnings statements indicating your income level. See your lender for more information.

Can I get cash back from closing to pay off other loans or refinance my credit cards?


USDA program requirements
USDA program eligible areas in and around Charlotte
USDA program income limits
USDA program benefits to home buyers
Frequently asked questions about the USDA program
USDA loan program

Down Payment Assistance Programs & Grants


Would you like to find out if you qualify for the purchase of a home? A down payment assistance? Are you interested in having Cornerstone Realty help you to sell your home? Call us today or fill out the form below and we will contact you as soon as possible.

Mortgage Center

We have included below a few tools to help you determine your mortgage payments, closing costs and an estimator of how much you could afford based on your income. To get pre-approved for the purchase of a home, give us a call today or fill out an online inquiry from our website and we will contact you with 24 hours of your submission.


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This Charlotte real estate website provides search tools, information and market news for home buyers and sellers. All the properties displayed on this website are generated automatically from the Carolina MLS and are updated daily.

The down payment assistance programs discussed in this website are based on a 30-year fixed loan. Interest rate is the current market rate.

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