USDA Loans in TN

USDA Loans in TN remain one of the best options for rural buyers. Many homes qualify for this type of loan, and interest rates are often more favorable than other options.

If you are seeking to become a homeowner in Tennessee, Joel Kavanaugh and Cardinal Financial are Your Way Home to USDA Loans in TN. 

What are USDA Loans?

USDA home loans are federally-backed loans that target the needs of small communities, rural communities, and outlying metro areas. Although insured by the United States Department of Agriculture, Bureau of Rural Development, they are administered by private, local lenders like Cardinal Financial.

This means that, although federal money and guarantees are involved, your connection remains with a local lender that is part of your own community. Joel Kavanaugh found his passion for helping others purchase a home after buying his own first home. USDA Loans in TN are an exceptional method for first-time homebuyers to make their dreams come true.

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USDA Home Loans feature the following benefits:

  • No down payment is required
  • Competitive interest rates
  • Low mortgage insurance
  • Flexible credit requirements
  • Broad area eligibility
  • 100% financing available
  • No purchase price limit
  • Closing costs can be included in the financing

Joel Kavanaugh can show you how USDA Loans in TN can be used to purchase an existing home, a foreclosed home, or a newly constructed home. Call him at Cardinal Financial today for more information and assistance.

USDA Loans in TN Eligibility

In order to qualify for a USDA Loan in TN, prospective borrowers must meet basic requirements established by the USDA that consider the home’s location and your income, credit, and other factors. Below are some of the basic requirements for eligibility. Joel Kavanaugh can explain more and help you with any questions.

Minimum Qualifications for USDA Loans in TN

  • Applicants must show proof of U.S. citizenship or legal permanent resident 
  • Applicants must demonstrate creditworthiness, usually with a credit score not less than 640
  • Applicants must show proof of a stable and dependable income
  • Applicants must demonstrate an adjusted household income of equal to or less than 115% of the area median income
  • Applicants must affirm that the property will serve as the primary residence and is located in a qualified rural area

USDA Loan Credit Requirements

Cardinal Financial will review certain items to determine your creditworthiness and determination to repay the loan, including: 

  • Repayment history
  • Credit utilization
  • Length of credit history

USDA Loan Income Requirements

Under the USDA home loan guidelines, lenders are required to perform four separate income calculations when determining your income eligibility.

These include: 
  • Annual Household Income
  • Adjusted Annual Household Income
  • USDA Qualifying Income
  • Repayment Income

Minimum USDA requirements demand that applicants verify a stable income that is likely to continue. Cardinal Financial may ask to review past income tax records and employment pay records to verify stable employment and make these calculations while determining your eligibility. 

There are other USDA-mandated requirements that must be verified by lenders, and Joel can explain more about each when you call and schedule an appointment to meet with him at his Johnson City office. 

How to Apply for a USDA Loan in TN

Many hardworking Tennessee families struggle to save up the down payment that is often required, at times at least 20% of the purchase price. A USDA loan in TN through Cardinal Financial may be the best route to home ownership for you. Call Joel Kavanaugh today or complete the online contact form to inquire about your eligibility for the USDA home loan program in TN.

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