With Millennial Home Loans quick online loan application, determining if you qualify for a USDA Loan and for how much, has never been easier.

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USDA Loans.

0% Down, 6% Seller Closing Credit Allowed!

Buy a house in a designated USDA eligible area with no money down

Guidelines

Calculators

580 minimum middle credit score for all borrowers on the loan – purchase
640 minimum middle credit score for all borrowers on the loan – one-time close construction loan
No foreclosure, short sale, or Chapter 7 bankruptcy discharge within three years of contract ratification date on credit report not permitted
Minimum of two tradelines on credit, with a positive pay history within the most recent 12-month period. Accounts can be open or closed
If two tradelines aren’t on credit, alternative tradelines can be
No mortgage delinquency in the last 12 months for a USDA-to-USDA Refinance

USDA charges a 1% Commitment Fee
Commitment Fee can be financed into the loan Example: Purchase price – $100,000 Base Loan amount – $100,000 Commitment Fee – $1,010 ($100,000 [purchase price] /.99 – 100,000) Maximum financed loan amount = $101,010
USDA requires a monthly Annual Fee (i.e. mortgage insurance premium) with an annual factorial of .35%

33.99/45.99% (DTI) with GUS Accept/Eligible underwriting findings
29/41% debt-to-income (DTI) with GUS Accept/Refer underwriting findings and credit score less than 679
31.99/42.99 with GUS Accept/Refer underwriting findings and credit score greater than 680 and with compensating factors such as:
- 680 or higher credit score
- No or low “payment shock” – less than a 100% increase in proposed mortgage payment Vs. current rental housing expenses
- Fiscally sound use of credit
- Ability to accumulate savings
- Stable employment history with 2 or more in current position or continuous employment history with no job gaps
- Cash reserves available for use after settlement
- Career advancement as indicated by job training or additional education in the applicants profession
- Trailing spouse income – as a result of a job transfer, the house is being purchased, prior to the secondary wage-earner obtaining employment. If the secondary wage-earner has an established history of employment and has a reasonable chance to obtain new employment in the area
- Low total debt load

Must be located in an eligible USDA Rural Development Location
Owner-occupied properties
Existing attached and detached single-family residences
New construction with permanent financing only
PUD’s (i.e. Townhomes)
Condo-units. HUD, VA, FNMA or FHLMC approved project
Log cabin homes, provided Appraisal Report lists other comparable log cabin homes that have recently sold in the area

All loans must be fully documented per Agency Guidelines
For Self Employed borrowers, in addition to Agency Guidelines, two years of the tax returns (personal and business) along with a year-to-date profit and loss (unaudited)

0% down payment required
Seller contribution toward buyers closing costs up to 6% of the purchase price
Closing cost help can come from flexible sources including family member gifts and loans against a 401k retirement account
If the appraised value of the property exceeds the purchase price, the difference can be used to cover closing costs

USDA primarily often won’t allow applicants to own other properties
Exceptions include when the other property owned is:
- Not owned in the local commuting area as the new property; or
- Not structurally sound and/or functionally adequate
- Manufactured home not on a permanent foundation