USDA loans are mortgage loans offered by the United States Department of Agriculture (USDA) and are designed to help low- to moderate-income individuals and families in rural areas purchase homes.

Qualification:

• To be eligible for a USDA loan, individuals must meet certain criteria, including having a stable income, being a U.S. citizen or permanent resident, and purchasing a home in an eligible rural area as defined by the USDA.

Income Limits:

• USDA loans have income limits based on the area's median income. The borrower's income must not exceed the specified limit for their household size.

Property Eligibility:

• The property being purchased must meet USDA's eligibility requirements, including being located in an eligible rural area and meeting certain quality and safety standards.

Credit Score:

• While there is no specific minimum credit score requirement, most lenders prefer a credit score of at least 640.

Down Payment:

• USDA loans offer the benefit of no down payment requirement for most borrowers.

Debt-to-Income Ratio:

• The maximum debt-to-income ratio allowed for USDA loans is typically 41%, although some lenders may be flexible with higher ratios.

It is important to note that specific requirements may vary depending on the lender and individual circumstances. Consulting with a USDA-approved lender is recommended for detailed information and to determine eligibility.