What is a USDA Loan in Oklahoma?
A USDA Loan in Oklahoma is a type of loan designed for rural development and is granted through the government. Rural homeowners and others who seek rural property often apply for this type of loan. Most qualified borrowers receive loans for up to 100 percent of the financing cost through the United States Department of Agriculture’s Rural Housing Services. Typically, a USDA Loan in Oklahoma allows closing costs to be paid by seller or financed directly into the loan.
Eligibility for a USDA Loan in Oklahoma is determined by three main factors. First of all, credit worthiness is imperative. An underwriter at USDA Loans Direct will review your credit history and one of the most important items the underwriter will be looking for is if you have a history of paying your bills on time. If your credit is has some tarnishes, some of this may be overlooked as long as your credit has been rehabilitated within the last 12 months. Collections and open judgments must be paid off before any closing can take place on a new dwelling.
To qualify for a USDA Loan in Oklahoma, your home will have to be located within the rural area designated by USDA. It is surprising to see just how many Oklahoma homes qualify for no money down loans. The USDA has a goal to help the rural communities by providing land and more properties at affordable rates.
Remember, the USDA doesn’t allow current buyers to own any other property and purchase another property with the USDA loan at same time. This loan is totally designed for home buyers who have not been able to qualify for other types of financing and those who are living in inadequate housing. There are a few exceptions where USDA will allow you to keep another home. One example is that a trailer or any manufactured home is not considered to be adequate for dwelling. Another instance is if your current home is not large enough for your family size.
Processing a USDA loan can take anywhere from two weeks to 30 days to gain approval. The loan must be approved by Oklahoma’s USDA office. After approval, the borrower is immediately notified and the paperwork is then finalized.
In order to qualify for a USDA loan, your income must not exceed the USDA income guidelines. When calculating your income, you must calculate all gross household income towards your annual income. This means that if you have more than one person living in the house, the income of each member of the household must be included. There are some amendments which can be applied such as medical expenses and child care to offset this limit.