USDA Guidelines You Need to Know

As a home buyer or a home seller, you may hear the words “USDA HOME LOAN,” or “Is this home USDA certified?” What specifically does USDA mean in the home buying or home selling process? Well, USDA stands for “United States Department of Agriculture.” This part of our government helps in rural development areas across the United States. For SW Missouri this means that local communities that are not highly metropolitan will have funds available for home or business loans up to 100%  for financing.

There are requirements however for home buyers in getting a USDA loan. For starters your credit score MUST me at least 600 or higher. The USDA has dropped their points requirement from 620 to 600, however a home buyer still needs to have a low debt to income ratio to be approved for a USDA loan.

What all is included in a USDA 100% home loan?

-A Buyer will have to ask the Seller to pay or will have to pay for themselves all closing costs and pre-paids. This includes M/L, home inspections, home appraisal, pest inspections, title commitment fees and title insurance, all real estate fees, and prorated real estate taxes. These fees can be applied to the loan amount if one can be qualified
-A Certified USDA Home Inspection and Appraisal will be completed. How is this different from a “normal” home inspection? Well the USDA has certain requirements that the home must meet in order to obtain the loan, here are just a few:
This includes: A vapor or moisture barrier in the crawlspace of the home. This barrier keeps ground moisture from coming into the crawlspace and mold for generating.
-All electrical panels up to date and in working order. A home with old actual FUSES will not pass USDA guidelines.
-Attics to have pull down access with stairs.
-The home must be in safe and sanitary living conditions

Which Areas Qualify For USDA?

This is a fantastic question! Most all rural areas like Fair Grove, Billings, Hurley, Highlandville, Strafford, Ash Grove, Bois D Arc are to name a few qualify, however, areas like Republic, Ozark, Clever, Battlefield and now NIXA qualify as well.
This has been a big game changer in Christian County but it has brought so many opportunities for both buyers and sellers who have been wanting to get into the Nixa and Ozark school districts but were unable to. Murney Associates, is looking for another great year in Christian County. The Nixa Murney office is already busy and prepared for what the new 2015 real estate season brings.

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