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An Oklahoma USDA loan or rural development loan is a home loan that is backed by the United States Department of Agriculture. There are two different types of USDA loans. The first is the USDA guaranteed loan and the second is the USDA direct loan. The USDA loan is designed for homebuyers in Oklahoma and around the country who fall in the low to the moderate-income category in areas that are more rural in nature.
There are several benefits to the USDA home loan. The most obvious benefit is that the loan product does not require a down payment. It is the only loan product for non-veterans that offers a true 100% feature. In addition to the no money down feature, there are several other great points with the USDA loan. Another great feature is the loan product allows for the seller to pay up to 6% of the homebuyers closing costs and, in most cases, this is more than enough to cover everything. For example, if the sales price is $120,000 the seller can up to pay up to $7,200 of the buyers’ costs. The USDA home loan product is also very flexible when it comes to credit allowing buyers with previous credit issues to still obtain a USDA home loan.
The short answer is USDA doesn’t actually establish a minimum credit score requirement. This is actually left up to the individual lender. The range that is typically seen from lender to lender is 620-660. When seeking an Oklahoma USDA loan, it is always a good practice to check with your lender.
The USDA mortgage does not have a maximum loan amount. The key that the borrower meets the debt-to-income requirements set forth along with the household income requirements. The household requirements can be found on the USDA website under single-family housing program.
In Oklahoma and other states it's not uncommon to find properties that have additional acreage with the home. There is no limitation on acreage. The caution is if the acreage exceeds 30% of the total value it can become an issue. Additionally, it can become challenging to find comparable sales when there is additional acreage.
The Rural Development home loan does allow homebuyers to buy a home even if they have had a previous bankruptcy. Individuals with previous bankruptcy must be 3 years removed from a chapter 7 discharge.
No, the USDA loan is not only great for first-time homebuyers but move-up buyers as well. The USDA loan does have a requirement where move-up buyers must sell their current home before purchasing a new home with the USDA loan. It's not uncommon in this scenario to have same day closings where the current home is sold and closed then the closing on the new home happens.
Yes, homebuyers who have participated in the USDA home loan program in the past are eligible to participate again. Borrowers will need to meet current qualification standards.
Homebuyers in Oklahoma can buy a home that has swimming and the USDA Rural Development loan be used to do so. The requirements for pools are that they must be functional and meet all standards that are set forth in the HUD handbook.
Determining Oklahoma USDA eligibility is very easy. To determine a property’s eligibility can be done by doing a property search using the USDA eligibility map. A specific address can be used or you can search by a general area.
Yes for homeowners in Oklahoma that currently have a USDA home loan are eligible for a refinance. There are three different types of USDA refinances so homeowners are encouraged to speak with their loan officer as to which one best fits their needs. IF a homeowner has a mortgage that is not a USDA loan, they cannot refinance that loan into a new USDA loan.
Yes, borrowers can buy a home with a septic tank and finance it with a USDA mortgage. It is not uncommon for homes that are located in areas of Oklahoma that are more rural in nature to have a septic tank. It must be in proper working order and fully functional.
The USDA home mortgage requires a 2-year work history for anyone who is a borrower for the loan. That does not mean the borrower has to have been on their current job for 2 years only that they need a history of working for 2 years.
The USDA loan has household income requirements. Since the loan is designed for households of low to moderate-income the USDA has income caps based on the median income of the area. All of the combined income of adults in a household cannot exceed 115% of the median income for the area. This is why the maximum income allowed varies from location to location. The best way to determine what the maximum income is for a given area is to use the USDA website to look those amounts up.
This is going to be determined by the individual lender however most lenders do not charge an upfront application fee.
Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice.