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To
be eligible for 100% Financing, applicants must:
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Have
an adequate and dependable income;
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Be
a U.S. citizen or be legally admitted to the United States for
permanent residence;
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Have
an adjusted annual household income that does not
exceed the moderate income limit established for the area. A
family’s income includes the total gross income of the applicant,
co-applicant, and any other adults in the household. Applicants may
be eligible to make certain adjustments to gross income, such as
annual child care expense and $480 for each minor child, in order to
qualify. USDA Rural Development field offices can provide the
moderate income limits for the areas that fall within their
jurisdiction, and can provide further guidance on calculating
household income;
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Have a credit history that indicates a reasonable willingness to
meet obligations as they become due;
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Have payment ability based on the following
ratios:
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Principal, Interest, Taxes, and Insurance (PITI)
divided by gross monthly income, must be equal to or less than
29 percent.
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Total debt (TD) divided by gross monthly
income must be equal to or less than 41 percent.
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