USDA Loans Houston: Go For Direct or Guaranteed

USDA Loans Houston

Oklahoma Mortgage Direct | OK Mortgage Lender | offers these two programs based on the above assessment of your income levels. The main programs for Houston USDA loans include:

The Direct Program

This is a scheme that is suitable for applicants whose earnings are below 80% or above 50% of the Area Median Income. The latter refers to the collective average earnings, per annum, for residents of the county. Advantages include:

  • It allows applicants with a bad credit history to qualify.
  • Even with the lowest income, you can apply and own a home.

If you have better financial prospects, then this program of USDA loans Houston may not be for you. We have an alternative next:

The Guaranteed Program

This is the program to which most applicants are eligible. To secure it, you ought to meet these guidelines:

  • Your earnings are below 115 percent of the area median.
  • You do not have an existing mortgage. However, you can apply if you need to refinance or have already settled a previous amortization plan.

The two schemes above are available to first-time and second-time homebuyers through Houston USDA loans.

Am I Eligible?

You will need to pass our pre-qualification test upon applying. It has these simple guidelines:

  • That your home of choice is in a rural-designate area. This needs to be in the suburban area of this city.
  • That you currently have no other mortgage commitments but those of USDA Houston loans.
  • Your income level is low-to-moderate. This means that your earnings are just slightly above or below the median area income of your county.

Comparative Advantages That Come With This Program

You will gain the following benefits upon applying for Houston USDA Loans that are not available in other programs:

  • No credit score requirements. You can pass with as low a score as 620.
  • No maximum financing limit. You can get as high an amount as you need on this program as long as your income-to-debt ratio allows that. This ratio comes in the form of 29/41. This infers that your mortgage costs should not exceed 29 percent of your earnings while no more than 41 percent of your combined debts should be part of your income.

The choice is yours to either go for a Direct or Guaranteed Program during your application for USDA loans Houston. We are masters at helping people to not only pre-qualify but select options such as the amortization duration which can be 30 or 15 years. The former is at a permanent rate while the latter at an adjustable interest rate.
Helpful links for you to review:


USDA Down Payment Assistance

First Time Home Buyer

USDA Rural Development Loan