USDA Loans

USDA Loans: The USDA Mortgage Loan Program

The USDA loan program is a popular option for people who have had a short sale or foreclosure in their past because it is one of the mortgage programs with the shortest waiting periods and most flexible underwriting guidelines.

USDAA loan highlights include:

  • 100% true financing for new home purchases
  • No mortgage insurance required
  • No prepay penalty for any USDA loan

USDA Loan Waiting Periods

USDA loan after bankruptcy: You will need to wait 3 years after a chapter 7/13 bankruptcy.

USDA loan after short sale: The waiting period for a USDA loan after a short sale can be as little as 1 month in the right situation.  If you have had a short sale and the following conditions apply, then you could possibly get a USDA loan in as little as 1 months after your short sale:

  • Credit Score of 660 or higher
  • No late payments for the past 12 months
  • If you have recently sold your home and have no late payments, it is possible to qualify immediately
  • Obtain a GUS Approval (This is an automated underwriting approval for a USDA Home Loan).

USDA loan after foreclosure: As a standard rule, many lenders will tell you that you will need to wait 3 years after a foreclosure.

USDA loan after deed-in-lieu: The waiting period for a USDA loan after a deed-in-lieu of foreclosure is generally 3 years.

USDA loan after debt settlement: The waiting period for a USDA loan after doing debt settlement varies.  The reason it varies is that debt settlement will impact everyone’s credit differently and the debt settlement event is part of an overall credit profile rating.  If you are curious as to how long it takes to get a USDA loan after debt settlement, you will want to consult with a loan officer who is an expert in USDA loans.

USDA Loans: Finding The Right Lender

Finding the right USDA loan lender is easy if you know where to look.  A USDA loan lender will have the right experience and underwriting team who can get all of your USDA loan questions answered as well as help you with the ins and outs of the USDA loan program.  Get started with the right USDA loan lender now.