Eligibility Requirements for USDA Loans! Applying for a USDA loan can be daunting, yet it's an excellent way to finance your home if you qualify. Understanding the requirements that come with this type of loan is key to success. (To start,) there are income limits based on the size of household and location of the property. Generally speaking, those who make 115% or less of their area's median income may qualify for a USDA loan. Additionally, applicants must show proof of employment and have decent credit scores; usually above 640 but this varies from lender to lender.

Another factor in eligibility is debt-to-income ratio; an applicant must have enough money left over after paying bills to cover housing expenses. Furthermore, applicants must purchase a single family residence as investment properties do not qualify for this type of loan. Lastly, foreign citizens are ineligible unless they possess permanent residency status in the US with proper documentation as evidence.

To sum up, knowing what you need before applying for a USDA loan is important so you don't waste time and resources trying to qualify when you won't meet all criteria. Make sure you have all documents ready before submitting an application and understand any restrictions that apply to your situation!