USDA – Valley Vista

USDA Direct Home Loans, also known as Section 502 Direct loans, are administered directly by the United States Department of Agriculture (USDA). These loans are specifically designed to assist low and very-low-income households in rural areas. Key features include:

Low Interest Rates

Zero Down Payment

Income Limits

Low Monthly Payments

who can apply for this program?

A number of factors are considered when determining eligibility for Single Family Direct Home Loans. At a minimum, applicants must have an adjusted income that is at or below the applicable low-income limit for the area in which they wish to buy a house. They must also demonstrate a willingness and ability to repay debt.

HELPFUL REQUIREMENT DETAILS

• The interest rate is fixed, and based on current market rates at loan approval or closing, whichever is lower.

• When modified by payment assistance, the monthly mortgage payment can be reduced to as low as an effective 1 percent interest rate.

• The payback period is 33 years (38 years for very-low-income applicants who can’t afford a 33-year loan term).

• Down payments are not typically required, but applicants with assets higher than the asset limit can be required to use a portion of those assets.

APPLICANTS MUST

Be without decent, safe, and sanitary housing

Agree to occupy the property as their principal residence

Have the legal capacity to incur a loan obligation

Meet citizenship or eligible noncitizen requirements

Not be suspended or debarred from participation in federal programs

Be unable to obtain a loan from other resources on terms and conditions that can reasonably be expected to be met

The do and don'ts when purchasing a home

Do

Don`t

Change jobs become self employed or your job
Make a large purchase buch as a vehicle or furniture
apply for new credit
Make large cash deposits or move money between banks
go-sing on a loan for anyone
pay off any current debit collection or charge-offs without discussing with your loan officer
close, max out or consolidate any credit cards

Documents to bring form pre-qualification usda-direct program:

3 years of Tax Returns
Current Bank Statement– 3 months
One month’s check (wage) or unemployment stubs
Social Security Cards
Drivers License
US Citizen – Resident Card

USDA minimum requirements:

Make at least $55,000 per year; household income or self
Not currently own a home
Report all household members, including minors. Any income going into the home has to be reported and will be considered during the qualification process.
Credit: Have no collections or late payments within the last 365 days
Be a Citizen or Permanent Resident of the United States

Do you still have questions?

A new home specialist will contact you for discussion of details

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About USDA Direct Home Loans