USDA loans in southern New Hampshire

What is a USDA loan?

The USDA Single Family Housing Guaranteed Loan Program backs loans made by approved private lenders for homes in eligible rural areas. It's meant for low- and moderate-income buyers, and you don't need to be a first-time buyer or a farmer to use it.

How do I know if a home is USDA eligible?

USDA decides which areas are eligible, and its map is updated from time to time. In southern New Hampshire, the larger cities and their most built-up neighborhoods are generally not eligible, while smaller towns and less developed areas may be. Because the line can fall in the middle of a town, Tom checks each address on USDA's eligibility map before you make an offer.

Are there USDA income limits?

Household income can't exceed 115% of the area's median household income. The limit depends on the county and the number of people in the household, and USDA counts the income of every adult who will live in the home, even one who won't be on the loan. Some deductions, such as for dependents and childcare, may lower the income that counts. USDA's income eligibility site shows the current limits, and Tom can run the numbers with you.

What are USDA's property and occupancy rules?

• The home must be your primary residence.
• Detached and attached homes, condos, PUDs, modular and manufactured homes may be eligible if they meet USDA's standards.
• The property can't be income-producing.
• There's no set acreage limit, but the home should be modest, safe and sound.

What fees come with a USDA loan?

USDA loans carry an upfront guarantee fee, which can usually be financed, and an annual fee paid monthly. Your Loan EstimateLoan Estimate A standard three-page form you receive within three business days of applying that shows your estimated rate, payment and costs. See the full glossary× shows both. Gift funds are allowed, and sellers may contribute toward closing costs.

How long does a USDA loan take, and is there a direct option?

A USDA guaranteed loan has one extra step. After the lender approves your file, it goes to USDA Rural Development, which reviews it and issues a conditional commitment before you can close. Leave room for that review in your purchase and sale timeline, and get your documents in early.

USDA also makes Section 502 Direct loans itself, for low- and very-low-income households under a lower income limit. You apply for those through a local Rural Development office, not through a lender, any time of year. If your income is above the direct limit, the guaranteed program Tom offers through private lenders is the one that fits.

USDA, FHA or NH Housing?

When both the address and your income qualify, USDA can be a strong option, but it isn't the only one. Tom compares it with FHA, conventional and NH Housing programs, and NH Housing's Home Flex programs can pair with USDA financing. See every program side by side in comparing NH loan programs.