USDA Loans (loan, interest rate, properties, guidelines)

[Billabongi]

I apologize if any of this is "known" information but I have been looking for days without an answer. I am also a first time home buyer so bear with me.

It appears my wife and I are possibly eligible for a USDA guaranteed loan. I say possibly as we are by my figures within $2000 of the income limit and within 2 percent of the debt to income ratio.

My question is simply this, is there anywhere I can go or anyone I can talk to that will look at my information from the USDAs perspective and "prequalify" me?

My situation is that if I can get the USDA loan I can proceed with buying a home in the next 1-2 months. If not I will need to wait a few more months to have the proper down payment.

[TexasHorseLady]

I'd recommend talking to a mortgage professional about this - it's what I would do.

Failing that, have you checked out the USDA eligibility website? I use it regularly to determine if various properties qualify for sure (the property AND the borrower have to qualify).

[Billabongi]

Thanks for the quick response. I have been looking at the usda site. The properties dont appear to be a big issue as were looking in the area that usda qualifies. Out biggiest issue is the income and debt to income ratio.

[Dark of the Moon]

Have you tried calling one of USDA's local offices and seeing if they can give you some general guidelines (beyond the basics provided on the website)? Or perhaps they can refer you to a local lender who'll have the information.

Best of luck!

[jetgraphics]

If you're referring to USDA Rural Development mortgages, it's best to contact the office that serves the area in which you wish to purchase your home. I wouldn't waste time with a "professional mortgage broker".

You need to determine if you are eligible for a direct mortgage or a guaranteed mortgage. Each area has its own income guidelines. Best deal is the interest subsidized direct mortgage from USDA. Depending on your income, you may get a mortgage at below market rate. Downside - if your income goes up, so does your mortgage payment. On the other hand, if your income drops, so does the interest rate.

Note: You can only apply in ONE area at a time. So do not try to apply in several areas or multiple offices.

GET YOUR APPLICATION IN ASAP.
DO NOT DELAY.