USDA Home Loan Requirements

Financial Concepts Mortgage is here to assist new and existing homeowners in Oklahoma City and rural Oklahoma with USDA home loans. Rural Housing Service (RHS) loans are more commonly known as USDA loans. These mortgages are backed by USDA Rural Development and are issued by private mortgage lenders like our expert team via the Single-Family Housing Guaranteed Loan Program.  

The USDA loan program was created to improve the economy and the quality of life in rural America. The USDA offers a 90% loan guarantee on RHS loans. Since that high percentage reduces risk, Financial Concepts Mortgage provides 100% loan financing with no down payments and low interest rates for qualified rural homebuyers. We’re happy to help homeowners in rural Oklahoma purchase primary residences that are safe, decent, and sanitary. Learn more about USDA home loans and get in touch with us to speak to one of our loan officers. 

Is a USDA Loan Right for Me?

USDA loans can be an excellent option, but they aren’t always a good fit. The Single Family Housing Guaranteed Loan Program is reserved for families with low-to-moderate incomes who live in rural areas and are looking to make homeownership a reality. To qualify, you must have United States citizenship or permanent residency status. Additionally, your family’s income cannot exceed the income limits set for your respective area. The property you wish to purchase must also be located within specific areas deemed eligible by the USDA. 

Offering USDA Loans in OK, KS, TX, AR, & AL

Financial Concepts Mortgage is licensed to provide USDA loans in Oklahoma City, rural Oklahoma, Texas, Kansas, Arkansas, and Alabama. There is no maximum loan size with the USDA loan program. The amount you’re able to borrow is limited by your household’s debt-to-income ratio. Our experienced team will help you determine the loan size you need and can qualify for. 

USDA Loan Benefits

There are many types of loans available to homebuyers in Oklahoma. USDA loans provide many benefits compared to conventional loans or FHA loans. Our loan experts are here to help you choose which loan best fits your needs and situation. Check out some of the benefits of USDA loans: 

• Low interest rates 
• No required down payment 
• Flexible credit score requirements 
• No prepayment penalties 
• No homeowner counseling required 
• Can be used by first-time homebuyers and previous homeowners 
• Closing costs and mortgage insurance premiums may be financed into your loan 
• Lower mortgage insurance rates than conventional or FHA loans 
• Choose a 15-year or 30-year fixed-rate mortgage 

USDA Loan Requirements 

In order to qualify for a USDA loan, you must meet specific requirements. Homebuyers must meet the USDA’s “ability to pay” standards, which include holding a steady job and income proven by tax returns, having a credit score of at least 640, although this can vary by lender, and having a debt-to-income ratio of 41% or less. Other requirements include: 

• Family income cannot exceed the limits set for your area 
• You cannot make more than 15% above the local median salary 
• Property must be located within eligible rural areas 
• Loans can be used for single-family homes only (no duplexes) 
• Mortgage insurance is required for USDA loan applications 

Other USDA Loan Programs

Financial Concepts Mortgage can also help you obtain the following home loan programs offered by the USDA: 

• Single Family Housing Direct Home Loans – Offered directly by the USDA, this program provides payment assistance to increase an applicant’s repayment ability. These loans are reserved for those who cannot obtain a loan from other resources. Payment assistance temporarily reduces your mortgage payment. 
• Single Family Housing Repair Loans and Grants – Designed to assist homeowners in repairing, improving, or modernizing their homes, this program provides loans to very low-income homeowners. Grants are also provided to elderly, very low-income homeowners who need to remove health and safety hazards from their homes. 

Rural Development Loan Refinancing

If you live in rural Oklahoma, you may qualify to refinance your rural development loan with an unlimited LTV refinance. An appraisal is not always required for this loan, and the process can be quick with guidelines that are easy to qualify for. Contact us to learn more about the USDA Streamlined-Assist Refinance program. 

USDA Loan Limits in Oklahoma 

Zero-down USDA Guaranteed Loans are very popular in rural Oklahoma. Anyone with low- to moderate-income can apply for these loans to purchase a home in an approved area with no down payment required. In most parts of Oklahoma, the guaranteed USDA loan limit is $306,000 for one to four-person households and $391,000 for five to eight-person households.