Are you a first-time homebuyer looking to purchase a house using a USDA loan in 2024? This episode provides a comprehensive guide to the latest USDA loan requirements for 2024, addressing key questions such as necessary credit scores, employment duration, and down payment expectations.

Key Highlights:

• USDA Loan Basics: A USDA Home Loan is a mortgage offered by the United States Department of Agriculture for rural property owners.
• Credit Score: No minimum credit score is required, although a score of 640 or above may simplify approval.
• Income Guidelines: There are household income limits, and borrowers must have steady income and proof of employment.
• Mortgage Insurance: USDA loans require both upfront and annual mortgage insurance premiums. The upfront premium is 1% of the base loan amount.
• Debt-to-Income Ratio: Ideally less than 41%, although higher ratios can be considered.
• Property Eligibility: The home must be the borrower's primary residence and located in an eligible rural area.

The episode also delves into the pros and cons of USDA loans, and provides a basic calculation method for monthly mortgage insurance premiums. For example, with a $200,000 purchase price and zero down payment, the monthly premium would be approximately $58.92.

For those interested in more restrictive qualifications, the USDA Direct program offers options with lower income limits and potential payment subsidies.

For further information on USDA loan regulations, property eligibility, and direct contact details, you can explore the USDA's official resources.