Qualifying for the USDA loan program

The first step in qualifying for the USDA loan program is to speak with a lender or Realtor knowledgeable about this program. Before your loan goes for approval and underwriting at USDA, it needs to be approved and underwritten by your lender. The USDA approval process takes about 10 business days. Add that to the time required by your lender and you are looking at a 45-day loan process altogether to get final approval and to move forward with the purchase.

USDA loan program requirements

The requirements to qualify for the USDA loan program include:

• Your combined gross yearly income for your household size must not exceed 115% of the median income for the area. See USDA program income limits
• The property you want to purchase must be located in a USDA eligible area. See USDA program eligible areas in and around Charlotte
• Your debt to income ratio must not exceed 29/41
• Your middle credit score must be at least 620. This is the requirement most lenders used, but the lender you select might require a higher middle credit score. Please note that a lack of credit history is not a derogatory.
• You must be a first time home buyer or repeat buyer who does current own a residence. The property you intend to purchase with the USDA loan program must be your intended primary residence
• U.S. citizen or permanent resident or qualified alien
• Legal capacity
• Primary residence

The USDA loan program is based on a 30-year fixed rate with no mortgage insurance (MI).

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
Apply for the USDA program