1. Proof Of Citizenship
When applying for a USDA loan that has a very low-interest rate, a UDSD first time home buyer must be able to prove US citizenship. The USDA first time home buyer must also need to show that they have permanent residency in the country.
2. Credit History
Looking into a person’s credit history is part of the qualifying process for a USDA first time home buyer. The first time home buyer will be put right through the process quickly with an automated underwriting process if they have a credit score of 580 or higher. If it is lower than that, the USDA first time home buyer will need to be manually underwritten and that will make it more difficult to qualify for the loan.
3. The Applicant’s Income
The applicants’ income is important. When a USDA first time home buyer first begins the process of applying for a loan, they will need to have a total income for 1 – 4 members of the household at under $86,850. For larger households, 5 to 8 members can reach up to an income of $114,650 per year. It will also make a difference according to how expensive an area’s housing is at any given time.
When the USDA first time home buyer is interested in this type of loan, they must show a willingness and a commitment to repay it. This means they will need to go 12 months of repayment without late costs or collections involved. People need to stick with their budget to make sure that they can meet their financial obligations in a good way.
5. The Physical Location
The USDA first time home buyer needs to make sure that the property that they wish to acquire is located in a rural area. The property must also be used as the primary residence for the USDA first time home buyer. Up to 35,000 people can live in this particular area.
The USDA first time home buyer needs to pay attention to the lender that they are going through. They may have different requirements that need to be fulfilled. This information will be given to them at the beginning of the process.