USDA Home Loans
Portland, Vancouver, and Southwest Washington
A mortgage from the USDA Home Loan Program, also known as the USDA Rural Development Guaranteed Housing Loan Program, is a mortgage loan offered to buyers purchasing a rural property. The benefits of a rural development home loan in Oregon and Washington include:
- No down payment
- Fixed Interest Rates
Rural Development Loans stipulate that a home must meet certain criteria to qualify for the program. The property must be located in a rural property designated area. To view eligible areas, visit the USDA Rural Development’s website.
USDA Home Loan Restrictions
The USDA Home Loan Program has some restrictions. One restriction is Maximum Household Income Limit (MHIL). The MHIL can vary by the county in which the home is purchased. The income limit for Clark County, Washington may be different than the income limit for Clackamas County, Oregon. The income limits change annually. The MHIL are based upon everyone in the home who is a wage earner, even if their income is not going to be used to qualify for the USDA Home Loan. For instance, a domestic partner who has a job, an adult child who has a job, or an elderly relative receiving social security benefits living in the home, would be considered when determining the maximum household income – even if that person was not planning on being on the mortgage loan. However, there are deductions that the USDA Underwriters allow, and often those calculations may pull a family under the MHIL.
A stipulation of the USDA Loan Program is the appraisal of the property will determine the maximum loan amount. The borrower may borrow up to 100% of the appraised value for purchase transactions and 100% for refinance transactions, if the guarantee fee is included in the loan amount.
Like any government backed loan, there are specific guidelines to obtain a USDA Home Loan. It could be a great opportunity for you. Your mortgage banker can help you through the entire process. Talk to one of our mortgage bankers today to learn more about the process.