How do USDA rural housing direct loans work?
My family may be forced to move to VA out of necessity, just as we were in the middle of the homebuying process. We know VA has a stronger USDA home loan program than our current state does, and is good for families with lower incomes, so we're interested in giving it a try. But we are a little unsure how the whole thing works. In particular, we would like to know if you have to already be a VA resident to apply, and if so how long do you need to live there for?
- liveinmdLv 59 years agoBest Answer
USDA is for specific rural areas and has income limits so make sure to check for where you want to move. The program is not sponsored by the states, it is federal money, so you do not have to be a
VA resident but, like all mortgages, until you have a property and a sales contract, you can't make Application. First, determine which county you want to move to and check the income limits; there is a direct and a 502 guaranteed program-direct has lower income limits and is directly through the USDA and guaranteed is through a bank but allows higher income. Once you locate a county, you can check local lenders for participation. USDA loans require you can show that you can and will repay the loan so you will have to prove you have a job and steady income.
- godgedLv 79 years ago
It has nothing to do with the state, USDA Rural Development is a federal program. What you may be referring to is the area that is eligible, and I am certain the VA has more eligible area than some states. There are income limitations, you and the property both have to qualify for the program. You do not need to be a VA resident to apply, but you need to have a valid contract in place before you can do too much. It would not hurt to talk to a local lender that deals the USDA loan to see if you qualify for the credit score and income restrictions. The income restrictions vary by county/area.
I do not believe there are restrictions on owner occupancy time, but there are recapture fees if you sell within the first few years of the loan.Source(s): Oregon Realtor
- 5 years ago
Is there limit on liquid assets and obtaining a usda loan
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