USDA Rural Home Loan Overview
- 100% – ZERO down loans
- Seller contributions up to 6%
- Must be a Residence – not a Farm
- Very LOW rates – 30 year fixed mortgages
- Conforming Loan amounts – up to 417,000.00
- Very Low monthly (annual) Mortgage insurance
- Rural areas are generally those with less than 25,000 or less per capita – this includes MOST of Oregon and its small towns/cities – does NOT include Portland Metro areas, Salem, Keizer and most of Albany but does include any home even 500 feet from the city limits of these same areas, but needs to be found “eligible”.
- Income limits are set per County. For example, in Salem (Marion County) a household with 1-4 family members are allowed an annual income of up to $73,600.00 with some allowances for reducing the income if needed.
- Credit does not need to be perfect – but there are minimum credit scores for each Lender. Your credit score can affect how much you will be approved for – or how much you can spend on the purchase price of a home.
- An appraisal will be required for a Purchase home loan. Plumbing, heating, water, waste disposal and electricity must be adequate for home occupancy. The dwelling must also be free from termites and dry rot.
- Must be primary residence for the buyer – it is not for investors.
- You do not need to be a first time homebuyer. But if you own another residence, the purchase of a second residence would need to be approved. USDA typically will only allow a second residence if the other home is inhabitable or commute time to work is much farther than that of the home owned currently.
Pamela Berns, Senior Loan Officer
Rock River Financial
388 State Street
Salem, OR 97301
Office: (503) 316-4322
Cell: (503) 798-8474
Toll-Free: (877) 316-8202
Fax: (503) 316-8004
Email: [email protected]
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