Among its attractive features? You can get a USDA loan with no money down on the house<\/a>. But only certain homebuyers are eligible.<\/p>\n If you\u2019re shopping for homes in non-urban areas and think you might qualify for a USDA loan, here\u2019s an expert-backed primer on how to get started in the process and how to see it through to approval\u2026 and happy homeownership.<\/p>\n \n\n\n\n\n Tell us a little bit about your plans (where you’re looking to buy and when you want to make a purchase) and we’ll connect you with top-rated buyer’s agents in your area. It takes only a few minutes, and it’s free.<\/p>\n \n First, be aware that you can only get a USDA loan for a house in certain eligible areas<\/a> that the government deems \u201crural,\u201d so make sure your area is included; a real estate agent with experience in USDA loans can help.<\/p>\n Then, assess your basic eligibility to qualify. For a USDA loan, you should have a minimum FICO score of 620<\/a>.<\/p>\n \u201cWhile the USDA does not designate a minimum credit score, lenders will have a minimum requirement,\u201d explains mortgage loan officer Jane Hammond<\/strong>. \u201cNot only must the ideal candidate have a solid credit score; many times, the credit lines are overlooked.\u201d She notes that a buyer should have at least four active lines of credit.<\/p>\n If you\u2019re not there yet, take some proactive steps to build your credit<\/a>: Get a credit report, review it and resolve any issues, pay down your balances, and tackle other doable actions<\/a> to get that FICO score up.<\/p>\n Also, to qualify for this type of loan, you can\u2019t earn more than the USDA income limit for the area where you want to buy. This limit varies depending on where the house is located, so spend some time researching what the threshold is in the region<\/a>.<\/p>\n \u201cThe ideal candidate has solid income but cannot exceed $85,850 for households up to four people. There are higher limits for more expensive areas,\u201d Hammond explains.<\/p>\n It\u2019s not just the dollar amount of what you earn, but also the specifics that comprise your income that count.<\/p>\n \u201cCandidates must have a two-year employment history in the same job or industry. Income can be one of the most complex factors in qualifying for USDA,\u201d Hammond says.<\/p>\n![\"homelight](\"https:\/\/www.homelight.com\/blog\/wp-content\/themes\/ccprototypev5\/images\/logo-small-cta.png\"){kind=logo}
\n <\/div>\n \n Step one: Talk to a few buyer's agents!<\/h3>\n
Assess your eligibility<\/h2>\n