What Are the Requirements of a USDA Loan?

A USDA loan can only be used to fund the purchase of a primary residence. For these purchases, USDA loans require:

• Maximum debt-to-income ratio of 29%. Other monthly debt payments beside the USDA loan cannot exceed 41% of income.

• A credit score of 620 or above is typically required.

• Borrowers must show 24 months' dependable income.

• Borrowers can also gain automatic approval with a credit score of at least 640.