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Staying in a first world country has its own merits and demerits. Most of the areas are widely populated and land value booms up every year. But out there still a large chunk is on rented homes or are homeless. These people have an ever longing desire for homes.


USDA home loans cometoan act of fulfilling their inner zeal. It is completely an economical debt financing scheme that provides a loan to citizens interested in dwelling in low populated areas.

The loan is offered by the Agricultural Department of United States of America.


Like any other home loans, these schemes have some definite criteria & bindings for the applicants. The locality must be in a USDA eligible area included in USDA map. The location must be included in the rural area, where for cities and towns the population density must be below than 20000, and for bigger cities, the qualification range is not having a good access to mortgage credit.


The process of USDA starts with the activity of locating a proper countryside area and its demarcation. After that, the lender needs to issue an appraisal in regard to the property. This makes sure that the applicant is ready & willing to pay for that particular location. More the appraisal certificate needs to clear from the safety and security departments to ensure that the area is safe for construction and inhabitation.

Any kind of safety issue may get the loan scheme procedure on hold.

Other major noteworthy eligibilitycriteria are as follows:

  • Income Limit for USDA program: The applicant must have an income limit less than or equal to 115% of the average income of the persons already residing there.
  • Loan credibility Limit: In pen and paper there is no limit to the credibility. But in general cases, it determined in co-relation to the income of the person
  • Limit on possession of Assets
  • Employment History & Background: The applicant must pose a history of employment of around 2 years.
  • The ratio between debt& income: The limit for DTI must be 29/41.


The USDA program has been developed keeping in mind for people with single family and in the low economic zone. The scheme prefers this kind of applicants instead of financing large financial firms. Under this scheme, one can even finance a single bedroom apartment in a large complex.


There are several advantages to taking this USDA loan. Some of them are as follows:

  • Easy & lower initial down payment in comparison to other loan schemes
  • Insurance by the mortgage is quite lower in respect to FHA Loans
  • Lower credit score requirement
  • No need to have a history of serving the country on defense grounds
  • Easy repayment terms
  • Long-term loan scheme

For more about the USDA home loans please read further by clicking here.