11 Things Houston First Time Home Buyers Should Know About USDA Loan

Hello and welcome to Houston First Time Home Buyers Edition, where we provide useful information to help Houston first time home buyers make the most informed decision when it comes to buying, decorating, and maintaining their first home. Today, we are just touching, really quickly on 11 things we think you should know about USDA loan.

• Home you are purchasing must be in an eligible rural area to use USDA.

• You will need to work with a USDA approved lender.

• Once you find a qualified home, down payment will be zero.

• Your credit score will need to be 640 or higher.

• Debt-to-income ration 41% or less.

• Home must be use as your primary residence.

• Single family homes only no town homes or condos.

• Two year work history will be required.

• Seller may pay up to 6% of the home’s asking price in closing cost.

• Texas USDA income Limit –  household of 1-4 is $103,500 – For household of 5-8 income limit is $136,600.

• Common reasons for denial includes failure to meet income requirements, insufficient employment history, low credit score, high DTI ratio, past bankruptcy, and area eligibility.

For more information on USDA loan, please speak with your USDA approved loan officer. As always, thank you so much for stopping by. Remember, if you are thinking of purchasing your first home, please contact us. We are here to help. We have been helping Houston first time home buyers since 2011 and we can help you. I hope you have an amazing day. Until next time...Diana