Dayton Ohio USDA Mortgage

Ohio USDA mortgages are ideal for first time homebuyers who have less than 5% to put down on a home purchase, or who have less than perfect credit scores. USDA is primarily a purchase mortgage program, although homeowners who have a USDA mortgage can refinance with USDA.

Dayton Ohio USDA Mortgage Overview

USDA Office of Rural Development (RD) is a part of the United Stated Department of Agriculture (USDA). The mission of the USDA RD is to improve the quality of life in rural areas.

Ohio USDA Eligibility

There is no minimum credit score requirement, however most lenders have implemented stricter credit score requirements. Currently most lenders require a 640 middle credit score to obtain a USDA Mortgage in Ohio.

To qualify for a USDA mortgage you must be under the area income limits in the Dayton Ohio are the income limits are:

Dayton Ohio USDA Mortgage Income Limits
1-4 Person Household5-8 Person Household
Dayton Ohio Metro Area$74,750$98,650

You may not own other suitable housing in order to qualify for a USDA mortgage.

Also, the property that you are purchasing must be in an eligible area. Below is a map of the Dayton Ohio area showing eligible USDA mortgage areas.  Call to check on a specific property

Dayton Ohio USDA Property Eligibility

Ohio USDA Credit History

Ohio USDA mortgage’s generally require recent credit history to be clean. However there are no set in stone guidelines.

Ohio USDA Collections and Judgments

Collection accounts may remain open if the following circumstances are met:

  • Any individual collection or the total of all the collections do not exceed $5000, and
  • Acceptable documentation evidencing circumstances surrounding the collection(s) was temporary in nature, beyond the borrowers control and the circumstance contributing to the collection(s) has been removed along with a detailed letter of explanation.

If the collections exceed $5,000, they must be paid in full. You cannot pay them down to below $5,000, you must pay them all off.

Dayton Ohio USDA borrowers will have to satisfy any court order judgments before becoming eligible.

Ohio USDA Mortgage Past Bankruptcy Waiting Period

A Chapter 7 bankruptcy must have been discharged at least 3 years prior to becoming eligible for a USDA purchase mortgage.

Borrowers must be in a Chapter 13 bankruptcy for a minimum of 12 months, with documentation of 12 months of on time payments and a letter of authorization from the bankruptcy trustee authorizing you to enter into new debt.

Documentation that the event was due to extenuating circumstances beyond the borrower’s control, temporary in nature and not likely to re-occur may be required.

Ohio USDA Mortgage Past Foreclosure Waiting Period

The bankruptcy guidelines also apply to Foreclosures, 3 year waiting period.

Dayton Ohio USDA Loan Limits

There are no set USDA mortgage loan limits, however your debt ratio generally needs to be within program guidelines, which combined with the income limits would effectively put a cap on the loan amount you qualify for.  Call for additional details.

Dayton Ohio USDA Purchase Mortgage

You can purchase a home in Dayton Ohio with a USDA mortgage with NO Down Payment.  USDA mortgage’s do require a little monthly mortgage insurance, but it is substantially lower than FHA and Conforming mortgage options.

Dayton Ohio USDA Refinance Mortgage

Dayton homeowners that have an existing USDA mortgage can refinance into a new USDA mortgage.  Some lenders offer a USDA Refinance Pilot Program, call for further details.