USDA Mortgages for 2022

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USDA loans

For many young people or others with limited resources in terms of down payment, credit history, or other limiting factors an often-overlooked program is the one-hundred percent loan program offered by the United States Department of Agriculture. What follows are the regulations and qualifying factors for this program.

Applicants must:

  • Be without decent, safe, and/or sanitary housing
  • Have applied for other loan programs only to be denied because of the restrictions on credit or other conditions which a lender would have otherwise approved
  • The property MUST be your primary residence
  • Have the legal capacity to incur a legal obligation
  • You must be a United States citizen and, if not, meet the eligibility requirements as a non-citizen
  • You cannot be barred from any federal programs

The property you are purchasing must be 2,000 square feet or less, not have a fair market value above the applicable loan limit, and cannot be used as an income-generating property. The subsidy that the USDA loan program offers is to be repaid over the life of the loan when the title is transferred is sold or you no longer live in the property. Another qualifying factor for these loans is income eligibility. The site is Single Family Housing Direct Home Loans | Rural Development ( to determine the income limits for this program. The home must be located in a rural area as determined by the USDA. The site is Eligibility ( Feel free to utilize these sites as needed to determine your unique situation if you may qualify for this program. The funds can be used to build, repair, renovate or even relocate the home as well as update the water and sewage system. The employees at 7th Level Mortgage have been trained on this loan program and will guide you through the entire process of qualifying for and obtaining this loan.

The borrowing limits have been developed by the USDA and using the Single-Family Housing Direct Self-Assessment tool will give you information to see if you are a good fit for this program. What the tool will provide are fields you can fill out about the general household composition, monthly income, monthly debts, property location, estimated property taxes, and estimated hazard insurance costs. Additionally, 7th Level Mortgage originators can help you through the self-assessment guide, and using the information will provide the maximum loan limit based on your ability to repay the loan as well as the area loan limit. Effective April 1, 2022, the rate for this program was 2.5% for low-income and very low-income borrowers. The rate is based on current market rates at loan approval or closing, whichever is LOWER! This makes the home more affordable. With the payment assistance, the effective rate could be as low as 1% which is a lot lower than conforming, conventional, FHA, or VA rates. For borrowers who may be a little behind the eight ball in terms of repayment of the loan based on a 33-year term, the payback period could be as long as 38 years. No down payment is required, however, for borrowers with assets greater than the asset limits set by the USDA, you may be required to use some of these assets as an offset for the costs.

For your convenience, I have supplied you with the resources sites so you can see if you meet the requirements for this program. The source is from the USDA.

Applicant Resources:

Borrower Resources:


If you have any questions or are uncertain as to how to use these tools, call 7th Level Mortgage. They will guide you through the process. When applying for the loan, be sure to have your income documents and other qualifying information at hand so the process is a smooth and easy one.