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What are the qualifications for USDA loan eligibility in Florida, Texas, Tennessee, and Alabama?

December 10th, 2021 by Sean Stephens

How do you qualify for a USDA loan in Florida, Texas, Tennessee, and Alabama?

We realize that the USDA loan process can be overwhelming to homebuyers, but because of the many benefits offered such as No Down Payment and flexible credit qualifying, it What are the qualifications for USDA loan eligibility in Florida, Texas, Tennessee, and Alabama?is important to understand the qualifications for USDA loan eligibility!

In today’s short video, I will walk you through the qualifications for USDA loan eligibility and explain key USDA loan approval requirements for Florida, Texas, Tennessee, and Alabama.

Now, before we get started, don’t forget to take advantage and download our USDA Blueprint for Success with the link below. This free guide is designed to walk you through the process step-by-step and is a great tool for both homebuyers and Realtors alike.

What are the qualifications for USDA loan eligibility in Florida, Texas, Tennessee, and Alabama?

USDA 100% financing allows first-time homebuyers and others looking to purchase a primary residence to save money when purchasing a home by eliminating the need for a down payment.

With that being said, let’s now review some of the key USDA eligibility requirements for property, income, and credit:

USDA Property Eligibility – Florida, Texas, Tennessee, and Alabama

USDA loans require that the property being purchased must be situated in an eligible rural area. The USDA search tool can help you find eligible homes. Also, keep in mind that:USDA Property Eligibility – Florida, Texas, Tennessee, and Alabama

  • A qualified property must be predominantly residential in use, character and appearance.
  • The property must not include buildings principally used for income-producing purposes.
  • USDA Loans will allow for Multiple Parcels, but additional requirements will apply.

USDA Loan Income Limits – Florida, Texas, Tennessee, and Alabama

When dealing with USDA income eligibility requirements, there are two types of income to review—annual income and repayment income.

  • Annual Income” refers to all eligible income sources from all adult household members, not just who is on the USDA loan.Current USDA Income Limits
    • USDA Loan eligibility requires that your household income does not exceed county USDA income limits.
    • You can search here to find specific USDA income limits for your area.
  • Repayment Income” will determine if the applicant(s) has sufficient income to repay the mortgage in addition to recurring debts.
    • Repayment income calculations often differ from the calculation of annual income.
    • Repayment income is the stable and dependable income of the applicants who will be on the USDA loan.
    • Also remember that co-signers and non-occupant co-borrowers are not permitted on USDA guaranteed loans.

USDA Loan Credit Score Requirements – Florida, Texas, Tennessee, and Alabama

USDA defines a credit score as follows:USDA Credit Score Requirements in Florida

“A credit score is a statistical number that evaluates an applicant’s creditworthiness based on their credit history. The credit score considers payment history, amounts owed, percentage of credit used, length of credit history, types of credit, and newly acquired credit.”

Updated USDA credit score guidelines no longer have a required minimum credit score, but they do require that an applicant have a validated credit score.

However, USDA also states that, “a validated score does not indicate the applicant has an acceptable credit history. A validated score confirms that one applicant has an eligible minimum credit history.”

Additionally, even though USDA guidelines do not have a required minimum credit score, lenders may establish their own minimum credit score requirements which can vary from lender to lender.

Summary – Qualifications for USDA loan eligibility in FL, TX, TN, and AL

Please note that while today’s topic does not address all USDA loan eligibility requirements, it does provide critical USDA qualifying details for Property Eligibility, Income Limits, and Credit Score eligibility.

As a USDA Approved Lender, we will walk you through the USDA loan qualifying process step-by-step. Just call or email to discuss your scenario and let us show you the “Metroplex” difference!

800-806-9836 Ext. 280
SeanS@MPLX.org

As always, I want everyone to make it a great day, and look forward to seeing you right here for the next tip of the week!

P.S. – You can download our “USDA Blueprint for Success” by CLICKING HERE.

Qualifications for USDA loan eligibility in Florida, Texas, Tennessee, and Alabama.

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