USDA mortgage North Dakota is your ticket to settling down at a convenient corner in the Peace Garden. What better prospect for borrowers of this government scheme than now, after the Rural Development hiked limits of the funds you can borrow!
Though there are no property limits, there are certain caps, based on income and loan amount as you will discover next.
New Mortgage Amounts as of May 2013
The government improved the amount which you can borrow via USDA mortgage ND:
- You can obtain as high as $240000 worth of funds.
- This is an increment of $61000 from the previous limit.
Area Median Income
- With the average area income of most counties being $74050, your earnings need to be 115% of this amount to qualify for the Guaranteed Program. This is the main subprogram of USDA mortgage ND that caters for moderate-income families.
- Alternatively, you may still qualify for the Direct Program with as little as 50-80% of the $74050 above. This loan type is available for low-income borrowers in the state.
You do not have to go through many requirements as happens with conventional loans. USDA Loans Direct will require just the following verifications to pre-qualify:
- A credit score of at least 620.
- A job record going back 24 months. You can also have a sustainable pension, if you do not have a job, to cover the entire repayment period for USDA mortgage North Dakota.
- No current property ownership. If you have another home, you need to sell it before you can qualify. However, second-time buyers are eligible if they meet the above property guideline.
Any more doubts about pre-qualification? Let us know and we will answer!
Advantages of USDA mortgage ND
- You can qualify with a higher debt-to-income ratio. This is the proportion between debt and income with the following implications:
- Your housing costs are below 29% of income.
- Your total debts, including housing and credit card payments are only 41% of your earnings.
- This means that residents of high-cost counties like Burleigh and Grand Forks can qualify for extra funds on USDA mortgage North Dakota. Both have an area median income of $78200 for a family unit of four members.
The Best Rates Are Here
Since the Housing Bubble affected the entire United States from 2008 onward, many people have been seeking refuge in government programs. This is because rates and loan conditions have remained predominantly the same as before the financial crisis. The most attractive benefit of all is the interest rate which has managed to stay low. Thus, this is the right time to apply for USDA mortgage North Dakota.
Helpful links for you to review: