USDA Loan Eligibility

USDA loans are a type of nonconventional home financing solution designed to help populate suburban and rural areas in the United States through affordable mortgages for low- to moderate-income families. The USDA Single Family Housing Guaranteed loan program is funded through private lenders and insured by the U.S. Department of Agriculture: Rural Development. These loans have amazing benefits, like no required down payment and favorable 15-30 year terms and fixed rates. To get approved for a USDA loan, you’ll need to meet income and property eligibility requirements, which vary based on where you live. To learn more about USDA loan eligibility, read on below and contact Nickel City Funding. Our mortgage professionals work with clients in North Tonawanda, Hamburg, Amherst, West Seneca, Lancaster, and nearby New York.

Income Limits

USDA loans were first created to help clients who might otherwise struggle to qualify for home financing. They are reserved for clients with low to moderate Income, which must not exceed 115% of adjusted area median income in a given county. In Niagara County, the limits are:

  • $78,400 for 1-4 people in a household
  • $103,500 for 5-8 people in a household

If you intend to purchase a home with a USDA loan outside of Niagara County, our agents can look up income limits in other areas for you.

Individual Requirements

To qualify for a USDA loan, you must agree to personally occupy your newly purchased home as your primary residence. Only U.S. citizens, non-citizen nationals and Qualified Aliens are eligible to apply for this federally backed loan program. You must not have been suspended or debarred from any other programs backed by the federal government. You must demonstrate your willingness and ability to make your monthly mortgage payments. You must have a decent credit score and should not have any judgment liens against you on any other property that you own.

Property Requirements

USDA loans may be used to purchase or rehabilitate a loan or refinance an existing home loan. If you have a household member with a physical disability, you can also use this funding to install special design features or equipment to improve accessibility. Certain approved energy-efficient improvements may also be covered, such as the installation of new insulation, solar panels or double-paned windows.

A USDA Single Family Housing Guaranteed loan may only be used for purchase in certain rural and suburban areas. Our mortgage professionals can show you which areas are eligible for this type of financing in and around North Tonawanda.

A Partner in Home Financing

When you’re ready to purchase a home, it helps to have a qualified mortgage professional on your side. The team at Nickel City Funding is here to guide you and help you find the most competitive rates for long-term savings. For more on USDA loan eligibility requirements for a home in North Tonawanda, Hamburg, Amherst, West Seneca, or Lancaster, contact Nickel City Funding today.