USDA Rural Development home loan amount?

Let's say my husband and I have a total annual income of 40,000.

Let's say we want to look into purchasing a home through the USDA Rural Development program.

The only debt we are paying off at the moment is our car payment of 230/month.

I don't yet know what our credit score is, but we've never missed a car payment and before we bought the car we just didn't have any credit. So I'm assuming it's decent, as we'd never been in debt prior to buying the car.

What would the loan amount be through the USDA? As in, what would the maximum amount be?

Basically I'm looking for a "window" so we can plan ahead.

Update:

My parents used USDA to buy a home when I was young. It was a nice 4 bed, 2 bath brick home on a 1 acre lot in a nice, quiet neighborhood with nice people. It was also close to schools, shopping, and both of my parents' jobs.

Typically, with Rural development, you can get a home just about anywhere so long as it's not in a larger city. I live in what I would consider a large town, and any home in the area is eligible for the program.

I'm not scared of zero down. I saw my parents do it and handle it just fine. The alternative would be to save up? But my husband and I can't necessarily do that while we're renting a house. We'd rather own one.

Anyway, I wasn't asking for opinions on the program. I want a window/estimate.

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  • 7 years ago
    Best Answer

    GO WITH THE FLOW doesn't know what they are talking about.

    We use USDA loans all the time and they are NOT in the sticks/woods.

    with an income of 40,000 your total mortgage really shouldn't be more hen 800 a month MAX. This works out to a loan amount of $140,000.

  • 7 years ago

    Before getting any 3 digit credit score, check your 3 reports line by line.

    These are all free once a year at

    Annual Credit Report.com https://www.annualcreditreport.com/cra/index.jsp

    No credit/ debit card required.

    Did you know that more than 20% of people have at least 1 small error in one of those 3 reports and they don't even know it?

    Print out those reports and review them line by line.

    If your reports are perfect, get your score at myfico.com for about $20.

    Scores of 740 and above will get you the best interest rates.

    There is no set max to USDA. Your income will determine your loan amount.

    Opinions about USDA:

    1. 0% down is a bad idea. You are instantly underwater.

    2. USDA homes are hard to sell since they are in rural areas.

    3. Know that they may be an hour away from high schools, hospitals, large grocery stores.

    Calculate the extra yearly gas you will use.

  • 4 years ago

    How can I get in touch with someone from USDA, I took out a loan for a 1st time homebuyer and the mortgage co is being secretive about the loan amount. They are saying the builders are giving me $7,000. and the realtor says she's giving me $1,000. Supposedly for closing costs?! Something fishy is going on. It is supposedly 0% down & 0% closing. The home is priced at $171.000. Someone help me find out this info please. Thanks.

  • 3 years ago

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    RE :USDA Rural Development home loan amount?

    Let's say my husband and I have a total annual income of 40,000.

    Let's say we want to look into purchasing a home through the USDA Rural Development program.

    The only debt we are paying off at the moment is our car payment of 230/month.

    I don't yet know what our credit score is, but we've never missed a car payment and before we bought the car we just didn't have any credit. So I'm assuming it's decent, as we'd never been in debt prior to buying the car.

    What would the loan amount be through the USDA? As in, what would the maximum amount be?

    Basically I'm looking for a "window" so we can plan ahead.

    Update: My parents used USDA to buy a home when I was young. It was a nice 4 bed, 2 bath brick home on a 1 acre lot in a nice, quiet neighborhood with nice people. It was also close to schools, shopping, and both of my parents' jobs.

    Typically, with Rural development, you can get a home just about anywhere so long as it's not in a larger city. I live in what I would consider a large town, and any home in the area is eligible for the program.

    I'm not scared of zero down. I saw my parents do it and handle it just fine. The alternative would be to save up? But my husband and I can't necessarily do that while we're renting a house. We'd rather own one.

    Anyway, I wasn't asking for opinions on the program. I want a window/estimate.

    1 following 4 answers

    Source(s): For Credit and finance solutions I recommend this website where you can find all the solutions. http://personalfinancesolution.info/index.html?src...
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  • 7 years ago

    If you qualify, and the house as well, your limit will be around 110k Paying off the car would bring it closer to 120k.

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