USDA 502 Direct/Guaranteed Loans

USDA Guaranteed and 502 Direct Loan Products from JustChoice LendingUSDA 502 Direct Loans

Justchoice is licensed to serve the states of KY, TN, VA, WV, IN, MI, AL, MS, FL

Certified packagers and qualified employers looking for 502 Packaging information can find it here.

The USDA 502 Direct Loan Program assists low and very low-income applicants in obtaining safe, affordable housing in rural areas.  Payment assistance is available to those who qualify. Applicants may obtain 100% financing to purchase an existing home, purchase a site and construct a home, or purchase a newly constructed home located in a rural area.  Mortgage payments are based on the household’s adjusted income.

Applicants for 502 Direct Loans must have low- or very low- incomes and live in a rural area. Contact a member of JustChoiceLending for specific income information   Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance, which are typically within 22 to 26 percent of an applicant’s income.

Under the Section 502 program, housing must be modest in size, design, and cost. To be considered modest housing for an area, the home should not have market value in excess of the applicable area loan limit, and should not have certain prohibited features.

Credit Score Requirement: A 640 credit score or an establishment of three alternative credit trade lines is required.  However, JustChoice Lending works with applicants to help them raise their credit scores to acceptable levels.

Term:  Loans are for up to 33 years (38 for those with incomes below 60 percent of AMI and who cannot afford 33-year terms). The term is 30 years for manufactured homes.

Property Eligibility: Only properties deemed by USDA to be rural in nature are eligible for financing. The Property Eligibility website may be found here: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

USDA Guaranteed Loans

The United States Department of Agriculture (USDA) Guaranteed Loan is for moderate- income applicants in rural areas who are unable to obtain adequate housing through conventional financing.  Applicants may obtain 100% financing to purchase an existing home, purchase a site and construct a home, or purchase a newly constructed home located in a rural area.  Mortgage payments are based on the household’s adjusted income.

Applicants for the USDA Guaranteed loan are subject to income restrictions.  For specific income limits in your area, click here or Contact a member of JustChoice Lending.

Credit Score Requirement: A 620 credit score or an establishment of three alternative credit trade lines is required.  However, JustChoice Lending works with applicants to help them raise their credit scores to acceptable levels.

Term: 30 years

Property Eligibility: Only properties deemed by USDA to be rural in nature are eligible for financing. The Property Eligibility website may be found here: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

Contact JustChoice Lending today to learn more about USDA Home Loans by calling 866-367-0855.

Other eligibility requirements may apply.  Please contact JustChoice Lending for full list of requirements.

Loan Comparisons

LOAN PROGRAMCREDIT SCOREINCOME LIMITSPROPERTY ELIGIBILITY
USDA Guaranteed620+ for all borrowers. True no score w/ three alternative credit trade lines.Family Size: 1-4 $78,200 5-8 $103,200Follow this link.
FHA620+ for all borrowers.NoneAll areas eligible.
VA620+ for all borrowers. True no score w/ three alternative credit trade lines.NoneAll areas eligible.
Conventional640+NoneAll areas eligible.
Conventional No MI (KY Only) KHC680+$97,650KY Properties
USDA Direct640+ for all borrowers. True no score w/ three alternative credit trade lines.80% AMI for household sizeFollow this link.
Home Possible Advantage620+100% area median income (Unless in an underserved area)All areas eligible.

Other conditions may apply. Call JCL Staff for information on specialized funds.