Today Lending Blog

Everyone looking to buy a home wants a good deal and USDA loans in Tulsa, OK may be exactly what you are looking for. Before you decide, you need to know a few things.

What is a USDA home loan?

These loans are 100% guaranteed by the federal government. The catch: USDA loans are only available in rural areas.

Are there loan limits?

Yes. The USDA limits how much someone can borrow for the home. This differs according to the area. In Tulsa, OK, the loan limit effective 3/1/09 is $144,500. That does not mean you can borrow that much towards any house. That is only the maximum borrowing amount allowable.

What about income limits?

Along with loan limits, the USDA limits the amount of income a family can receive and still qualify for the loan. Families up to 4 members can make $73,600. Families from 5 to 8 are allotted a maximum income of $97,150.

How much will the USDA loan finance?

USDA loans finance up to 102% of the appraised value of the house. This means it will finance 100% of the value along with the 2% USDA loan guarantee fee.

Who is eligible for USDA loans?

Like most loans, your income must be sufficient to pay the mortgage, interest, property taxes and insurance. Generally, mortgage companies expect payments to be less than 29% of the gross monthly income.

Credit score is also considered. In most cases, a FICO credit score of 620 is needed to qualify for a USDA loan.

The other factor involves your debt ratio. 41% debt is generally accepted as acceptable. The 41% includes all current debts plus the estimated amount to pay the housing costs.

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Today Lending (www.TodayLending.com) is owned by Chris and Kelly Davenport and is one of the top home lending institutions in all of Oklahoma and Texas. Chris and Kelly Davenport are also top real estate consultants in Tulsa,