Home Point Financial is pleased to announce that we now have USDA (United States Department of Agriculture) financing in Minnesota. USDA Loans are intended to provide lower-income homeowners with 100% financing (with no down payment). Once known as farm loans, they are now available to Minnesota residents in almost every MN county outside of major metropolitan areas (rural areas in Minnesota including Marshall, Roseau, Becker, and many others).
USDA Loan Requirements and Guidelines
There are a number of requirements to quality for Minnesota USDA Loans:
- Monthly housing costs (mortgage principal and interest, property taxes and insurance) must meet a specified percentage of your gross monthly income (29% ratio).
- Credit background will be fairly considered. At least a 640 FICO credit score is required to obtain a USDA approval through most lenders.
- Borrower must have enough income to pay housing costs plus all additional monthly debt (41% ratio with some flexibility).
- Income can be up to 115% of the median income for the area.
- Bankruptcy: Have been discharged from a Chapter 7 bankruptcy for three years or more (if applicable).
- Property must be considered rural, which is generally defined as open country with fewer than 10,000 people. Learn more here: http://eligibility.sc.egov.usda.gov.
Minnesota USDA Mortgage Rates
USDA Loan rates vary by individual and are determined by a number of factors specific to the individual, Minnesota property being financed, etc. In general, USDA rates are better than average compared to other options for qualifying individuals.
Minnesota USDA Lender
Contact Home Point Financial to learn more about USDA loans, eligibility and more.