The East Coast may be quite urbanized but USDA mortgage New York applies here, too! Yes, this program is not just for farming communities but even for you who reside in hometowns of Syracuse, Montgomery or Sullivan, away from the skyscrapers of the Big Apple. You only need to meet the following credit stipulations, albeit without a strong credit score.
Credit Score Requirements
Though USDA mortgage NY stipulates a FICO score of 640, you can still qualify with as little as 620.
It is equally important to understand how debt-to-income ratio, which is another credit requirement, works:
The formula for debt-to-income ratio is 29/41%. This underlines the following two requirements for USDA mortgage New York:
- That your mortgage costs and accessories like property tax and insurance should not go above 29% of your income.
- That your entire current debt of housing costs together with all domestic expenses should not, at any time, exceed 41% of total earnings.
How Much Should I Earn To Qualify?
The United States Department of Agriculture does not impose individual income limits but instead sets an Area Median Income. This is the yearly average earnings of the county. Most Counties of the Empire State have a mean income limit of $73600.
There are two subprograms that you can go for when you apply for USDA mortgage NY. These include:
Direct Program: This is suitable for low income applicants who have earnings proportionate to 50-80% of their area’s yearly income stipulations.
Guaranteed Program: This is the most inclusive program under USDA mortgage New York offering. It is suitable for moderate income applicants whose earnings are 115% of the county’s annual average income.
Thus, even when your credit score is poor, you can still apply for the Direct Program. However, those with more than 115% of area income cannot apply because they are above the moderate income group.
Enjoy the Following Benefits of USDA mortgage NY
Only a program that allows you to apply with a credit score of 620 can provide these set of benefits.
- You do not require a down payment.
- No Private Mortgage Insurance.
- The interest rate is among the lowest of all government programs.
When you apply at USDA Loans Direct, you can be sure that all the above set of benefits will come your way for the next 30 years of amortization. These include a chance to refinance to a lower rate than the current market rates through the Rural Pilot Program.
This is no doubt the best time to apply for USDA mortgage New York, one of the few programs that do not require strong credit score.
Helpful links for you to review: