Everything That You Need To Know About USDA-Rural Home Loans

Welcome to Snohomish County's USDA Home Loan Research Center with Dan Keller, Washington State Licensed Mortgage Loan Originator (MLO# 115349). I have put together valuable information and tools to help you gather all of the information that you need to make the most informed decision when shopping for a mortgage.

Sometimes the Washington USDA Home Loan Program can be hard to understand, especially understanding whether or not a property is USDA Eligible or if you may even qualify under the program guidelines.

I have designed this site to help navigate you through the Washington USDA Home Loan Program as you begin searching for the best mortgage options in buying you home!

I am always available to answer any questions that you may have - Dan Keller (425) 350-7136

Sometimes good credit and a down payment are not enough to qualify for a home loan at a commercial lending institution, such as a bank, savings and loan or with a mortgage broker. That is why the U.S. Department of Housing and Urban Development has provided a loan program that allows more rural families and individuals to be eligible to become homeowners with the help of a USDA guaranteed home loan. The USDA loan program allows:

- 640 min credit score
- Up to 6% seller contributions
- No PMI (private mortgage insurance)
- Zero Down
To See If You Qualify For A USDA Mortgage, Click Here To Pre-Qualify Online With Dan

The USDA-RD loan program DOES have 2 main qualifying features:
(1) Eligibility is region or location specific CLICK HERE to check if an address is USDA Eligible.
(2) Eligibility is income specific. Qualifying income is based on household members and a max income cap. CLICK HERE to see if you qualify under the max income cap.

You can also use Washington State USDA Zero Down Financing to purchase a new home! Please check out the Marysville Meadows New Homes in North Marysville to see how...
If the home you are wanting to purchase for Zero Down is NOT eligible for USDA financing, consider looking into the House Key State Bond First Time Homebuyer Program with Dan Keller. A 5-hour homebuyer education course sponsored by House Key is required to receive a State Bond that is used for your down payment.
For more information on USDA qualifying criteria, please review this handout that I made that details the USDA program. USDA Handout For Home Buyers.

USDA Credit Scoring Criteria & Guidelines- But What If I Have Bad Credit?

I am getting a lot of “credit challenged” home loan applications recently, so I feel this is a great time to clarify how USDA views your Credit Score, and what is acceptable for a USDA Home Loan Program. BUT PLEASE NOTE, I AM NOT SAYING POOR CREDIT IS OK, IT WILL COST YOU THOUSANDS OF DOLLARS OVER THE LIFE OF YOUR LOAN. PLEASE CONSIDER TALKING TO ME ABOUT IMPROVING YOUR CREDIT FIRST, YOU WILL THANK ME LATER! I HAVE CREDIT REPAIR SPECIALISTS THAT IN MOST CASES ADD 50-100 POINTS IN 30-60 DAYS, AND HAVE THE ABILITY TO GET ANYTHING REMOVED FROM REPORTING ON YOUR CREDIT REPORT. Click here for an example of How I Added 80 Points To My Clients Credit Score in 40 Days. I also recommend watching my short presentation on “Insider Secrets To A+ Credit” right here. Okay, so back to USDA. Basically the requirement states that you must have "a credit history that indicates a reasonable ability and willingness to meet obligations as they become due"

But What If I Have No Credit History or Credit Score?
If you have no credit history we will need to establish a credit history for you by providing at least 3 and hopefully 4 alternative credit sources (I do this on a daily basis for my clients and would be happy to walk you through this process). These are items such as your rental history, cell phone, utility, cable, daycare, storage etc. We ask the creditor to provide your payment history and we have them added to your credit profile (Again, I do this for you...). There are many people who have never used their credit and have no scores or documented history. Under the USDA Home Loan Program this is acceptable and does not eliminate you from qualifying for a home loan.

The following items are considered unacceptable UNLESS we can provide evidence that the cause of the problem was beyond your control, were acute in nature and have been removed and/or remedied. In most cases, I can either help you get these items removed from reporting on your credit report, or help you document that it was an isolated incident “outside of your control”:
• Bankruptcies must be discharges 36 months from date of application.
• Judgments must be paid 12 months prior to date of application.
• Foreclosures must be 36 months from date of application.
• Two or more rent payments paid 30 days late with the past 3 years.
• Accounts that have been sent to collection within the past 12 months.
• Collections that are outstanding with no arrangement for payment.
• Charge-offs that have occurred in the past 36 months.

Please note that this information is explanatory in nature and every file is subject to underwriter’s discretion. That is why it is important that you are working with a Pro, and surrounding yourself with a Team of USDA-Rural Development Experts. Contact Dan Keller for a FREE Credit Analysis and USDA Mortgage Consultation at dankellermtg@gmail.com or (425) 350-7136


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