Question 1

Are only first-time homebuyers eligible for a USDA loan?

Accepted Answer

No, USDA home loans are available for borrowers who aren’t first-time homebuyers as long as they meet the eligibility requirements.

Question 2

How much are the closing costs for a USDA loan?

Accepted Answer

Closing costs vary depending on the location. These are fees and charges incurred when finalizing the mortgage. Typically, they total around 1–3%.

Question 3

What repayment terms do USDA loans have?

Accepted Answer

Normally, USDA home loan borrowers can have a repayment period of up to 33 years. In some cases, it can be up to 35 years.

Question 4

What does the USDA require for employment eligibility?

Accepted Answer

There’s no minimum employment history requirement. However, there’s an income requirement applicants must meet. This varies per location and household size.

Question 5

How much is the USDA appraisal costs?

Accepted Answer

Appraisal costs may vary. That said, lenders must ensure that a qualified appraiser does the appraisal.

Question 6

What types of loans does the USDA offer?

Accepted Answer

The USDA also offers farm loans, direct and guaranteed loans to new farmers and/or ranchers, off-farm labor direct loans, on-farm labor housing loans and multifamily housing loans.

Question 7

What are some downsides to a USDA loan?

Accepted Answer

USDA home loans are only applicable to eligible rural areas. The borrower must also agree to use the property as their primary place of residence. Additionally, there is an income limit requirement.

Question 8

Can I get a USDA loan if I’ve filed for bankruptcy?

Accepted Answer

Yes, getting a USDA home loan is possible even if you have filed for bankruptcy. However, you may need to wait for three years to apply.

They also tend to have low interest rates

A Guide to USDA Home Loan Requirements, Eligibility & Income Limits

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