How do I qualify for a USDA loan in Colorado?

USDA Requirements

Up to 100% financing.
Credit score around 620-640 or higher.
Property must be in a USDA eligible area, generally a rural location or town of 20,000.
A steady job and income are generally required.
Only available for single-family homes that will be used as a primary residence.

What is the minimum square footage for a USDA loan?

For USDA direct loans, properties need to be 2,000 square feet or less and cannot have an in-ground swimming pool. Occupancy: You can only use single family USDA loans for a primary residence, not a second home. Residency: You must be a U.S. citizen, U.S. non-citizen national or qualified alien.

Do USDA loans have PMI?

So no, USDA loans don’t require PMI; only conventional loans have PMI, and only on those loans where the borrower has less than 20% equity in their home. Other loan programs may have their own forms of mortgage insurance. On FHA loans, mortgage insurance is referred to as a mortgage insurance premium (MIP).

What is the income limit for a USDA loan in Colorado?

Eligibility Requirements – Colorado Your new Colorado home could be right around the corner with a USDA loan. For Colorado residents, the average income limit for a family of 1-4 is $116,350, and for a family of 5 or more the limit can be as high as $153,600.

Do USDA loans have closing costs?

Generally, USDA loan closing costs run between 3% to 6% of the home’s purchase price. The total cost of the loan and cash needed at closing can vary widely from one borrower to the next depending on your credit, the lender and the property. Working with an experienced USDA lender can help you to avoid surprises.

Does USDA require tax returns?

USDA requires all applicants to be current on their income tax filings.

Is it hard to get approved for USDA?

Approved USDA loan lenders typically require a minimum credit score of at least 640 to get a USDA home loan. However, the USDA doesn’t have a minimum credit score, so borrowers with scores below 640 may still be eligible for a USDA-backed mortgage. If your credit score is below 640, there’s still hope.