The U.S. Department of Agriculture (USDA) Dallas had started the home loan programs in 2008, after the Great Depression. These programs were started by the government to make home ownership affordable and to give the country’s economy a boost. There are various types loans present under this program including loans for building, buying, renovating or repairing a house. The USDA loans are provided to people having low to moderate annual incomes, so that they can easily afford a modest and safe house for their families.
The USDA loans have made it possible for you to own your dream house in Dallas. These loans are applicable for people buying a house in the non metro areas in and surrounding Dallas. You can get up to 100% financing in these loans for a modest house, which makes it easy for you to get the loan as you will not have to give any down payment.
What is the maximum amount of funds you can receive for Dallas Home Buyers?
There are certain criteria you need to fulfil to be eligible for a USDA loan. These criteria also help in determining the amount of loan you are eligible for. The maximum finance provided by a USDA loan is $417,000; but you can apply for any sum.
The major deciding factor of the amount of loan to be received by you is determined by your income to debt ratio. The 29/41 ratio is the most essential factor in determining the USDA loan amount that you qualify for. According to the ratio, your housing loan expenses should not exceed your gross household income by 29%. And, the total of your housing and other debts or PITI (Principal, Interest, Taxes, and Insurance) should not exceed your gross household income by 41%.
The USDA Dallas loans also have one more advantage – if annual income of your household is up to 115% of the median income of the area, then you may qualify for a higher amount of loan. Since the loan amount has increased, you can easily buy a larger house, condo, or farm land for yourself. Median income means the average income of the non-metro residents of the county.
What are the pre-qualifications for a USDA Home Loan for Dallas Home Buyers?
The major qualification required to be eligible for a USDA loan in Dallas is that you should be residing in a rural area that has been classified by the Rural Development (RD). But over here, rural areas do not necessarily mean remote areas; they include several towns and semi-rural areas present in the outskirts of the city. Most of the places with a population of less than 25,000 people come under rural areas.
The second major requirement of this program is that your annual household income should be 115% of the average median income. But, if you are choosing the USDA Direct Loan program, then you just need to have 50-80% of the average median income to qualify.
How do you apply for a USDA home loan for Dallas Home Buyers?
If you meet the several requirements of the USDA loan, then you just need to do a few more things to apply for a USDA Dallas loan. Firstly, you have to pass the pre-qualification stage set by us. Then you need to get your house appraised and get the maximum loan you can for the house. After that you have to select your loan period and interest rate. You can either get a 15-year loan at an adjustable rate or a 30-year loan at a fixed rate of interest. Then you have to pay the closing fees and you’re done.
If you wish to know more about USDA home loans in Dallas, contact us.