How do you Qualify for a USDA Tennessee Loan?
How to Qualify for a USDA Tennessee Loan
Homebuyers who want to qualify for a USDA Tennessee loan should educate themselves on the requirements that come with a USDA loan. If you have followed my blog you know by now many of the fundamentals of the program but below is a refresher of the key points to be mindful of.
Qualifying for a USDA Tennessee Loan
- The USDA Rural Housing program will only allow primary residences to be purchased. You are not allowed to purchase a secondary home or investment property with a USDA Tennessee loan
- You will have to make sure that you are purchasing in an eligible rural area as designated by the USDA.
- Income limits will be based on your area and household family size so remember that the USDA qualifies all income that is within the household not just for the applicant on the loan.
- However, the home buyers applying for the loan must be able to qualify with underwriting using only their income.
- Last but not least, minimum credit will be required for underwriting purposes.