USDA Loan Pre-Approval: Everything You Need to Know
USDA loan pre-approval provides an accurate idea of the loan size you may qualify for and gives you a competitive advantage when making offers on homes.
March 10, 2025 12 MIN
USDA loan pre-approval provides an accurate idea of the loan size you may qualify for and gives you a competitive advantage when making offers on homes.
Seller concessions can be used to cover your out-of-pocket closing costs, with the USDA setting the maximum contribution limit at 6% of the home’s purchase price.
Having student loans won’t prevent you from qualifying for a USDA mortgage, but they will count toward your debt-to-income ratio, which can affect how large of a loan you are eligible for.
If you’re looking for an affordable option beyond a traditional site-built home, an FHA loan on a manufactured home could be the key to achieving your homeownership dreams.
Technically, FHA Jumbo Loans don’t exist, but some buyers can still finance high-value homes with FHA loans. For buyers living in cities where home prices have skyrocketed, FHA high-balance loans can serve the purpose of an FHA Jumbo loan.
USDA loans offer the opportunity to buy a manufactured home with zero down. But it must be a new, never-lived-in manufactured home to be eligible.
The USDA Streamlined Refinance and Streamline-Assist programs require minimal documentation and no home appraisal. The streamlined-assist option doesn’t require a credit check but USDA borrowers must reduce their monthly payments by at least $50.
This guide compares conventional, unconventional, and nontraditional loans, explaining their key differences, eligibility requirements, and pros and cons. By understanding these mortgage options, homebuyers can determine which loan type best suits their financial situation and homeownership goals.
RHS loans allow low-to-moderate-income borrowers to purchase rural properties with zero money down, lower mortgage insurance costs, and interest rates that are more favorable than with many other types of financing.
Conventional construction loans are a widely accessible option for building a new home. You can use these mortgages to fund construction on land you already own or include the cost of purchasing property.
Conventional loans come in all shapes and sizes and offer the flexibility to finance just about any real estate transaction, from purchasing your dream home to refinancing and renovating a multifamily investment property.
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While it’s a generous loan option, FHA loans come with several key requirements prospective borrowers will need to meet or exceed, including minimum credit score, minimum down payment, and maximum debt-to-income ratio.
Homeowners may need to wait up to 12 months before refinancing a government-backed mortgage or cash-out refinance. Some refinances are available right away for homeowners who can benefit from its terms.
USDA direct loans are more challenging to qualify for but offer lower monthly costs. USDA guaranteed loans are more widely available but have slightly higher, although still competitive, interest rates and payments.
FHA recently announced a change to its boarder rental income guidelines, and it could mean expanded affordability for struggling first-time buyers.
The USDA funding fee comes in two forms: an upfront funding fee of 1% of the total amount borrowed and an annual funding fee of 0.35% of your remaining loan balance.
