As a resident of Oklahoma, or even if you are relocating to the area, learning if you qualify for a USDA home loan Tulsa OK can help you get into a home or refinance your current mortgage.
Funding is currently available for the USDA Section 502 Guaranteed home loan program in Oklahoma. This USDA home loan is one of the few no money down” mortgage programs still existing.
Whether you want to purchase or refinance, it is important that you educate yourself before you go house hunting or consider refinancing.
There are a number of options available to Oklahoma residents, especially those who live in or want to move to rural areas such as Crescent, Newcastle, Cashion or other rural areas.
The USDA home loans have made it possible for low income individuals to acquire mortgages that would otherwise be not an option for them.
Some of the benefits of a USDA loan include:
No PMI, 100% financing which is based on the appraisal value and not the purchase price. The seller can pay up to 6% of the closing costs. Qualifying is not based solely on your credit score. You can get lower government interest rates, no limit to the amount you qualify for, and approved down payment assistance is acceptable. Past discharged bankruptcies will not disqualify you for a USDA loan.
Typically a credit score of 620+ will automatically qualify you credit wise. Your income determines how much you qualify for and even if you have a credit score as low at 600 you may still qualify. Anything below this number will be determined on a case by case basis.
What Type of Property Will Qualify
There are two main things that are looked at when the USDA home loan program determines property eligibility the location and the physical condition of the home.
You cannot qualify with multi-unit homes. Condominium and townhomes are eligible, but mobile homes are not. Basically, the home needs to be in good physical shape. Fixer-uppers do not qualify.
Am I Eligible for a USDA Home Loan?
To be eligible for a USDA home loan you must be a citizen of the United States of have permanent residence status in the US.
Nonprofit organizations such as community development groups, local government or American Indian tribes, bands, groups, or nations may qualify.
For-profit corporations may also qualify.
USDA loan applicants must be low to moderate income households, elderly, disabled or handicapped with an income not to exceed 115% of the median income in the area.
Where Do I Find Lenders
When searching for a lender for your USDA loan there are certain requirements that they too must meet. Not all lenders are able to do USDA loans, so it is important that you choose your lender wisely.
If you qualify for a USDA loan Tulsa OK contact an eligible lender in your area to determine your status and get started on owning your own home in rural Oklahoma.