An Oklahoma USDA Guaranteed Rural Development Home Mortgage Loan is a completely flexible no down payment government insured loan program that continues to gain popularity for home buyers interested in rural areas of Oklahoma.
An RD (Rural Development) loan is designed to promote home ownership for those with low to moderate incomes and who have limited savings for a down payment. This loan will actually lend up to the home’s appraised value and also allow the buyer to include closing costs AND MINOR repairs in the loan amount, (appraisal permitting).
One of the common misunderstandings about the USDA loan program is that it’s from farmer’s only. Actually this home mortgage loan is for those who wish to purchase a home outside the urban areas, and in fact there are many suburban areas which qualify for this program.
Benefits of a USDA HOME LOAN:
- 100 % Financing
- No Down Payment
- Low Mortgage Insurance
- Low FIXED Interest Rates
- Loan Amounts up to $417,000
- No Cash Reserve Requirements
- Seller Contributions Allowed
- Gifted Funds Allowed
- No Prepayment Penalty
To qualify for this particular loan program, please note there are two notable requirements that differentiate a USDA from an FHA or VA loan program.
1. The Location:
The home must be located in an Oklahoma designated rural approved area. Click the USDA Property Eligible link for further information.
Simply type in the address of the home you are interested in to see if it is eligible or ineligible.
If you prefer, complete the form below and I will assist you with the details.
2. Income Limits:
Must meet the Oklahoma USDA adjusted annual household income limits. The USDA uses two types of income for qualifying. Household income consists of the combined adjusted gross income all all adults living in the home, regardless if they are borrowers on the loan. This amount cannot exceed the county limits. The 2nd income used is the Repayment income. This is income from the actual loan applicants and determines the DTI (debt-to-income) ratio.
Maximum Loan Amount: USDA has not set a maximum loan amount but $417,000 appears to be the consensus by most lenders. Again, your maximum loan amount will be determined by your DTI (Debt to Income) ratio. USDA has set 29/41% as a max DTI, but in some cases may allow up to 47% with a GUS automated approval and a FICO score exceeding 660.