A USDA loan is a great option for many consumers who are looking to become homeowners. However, there are certain characteristics you'll need to qualify for this type of loan.

The following are seven characteristics that can allow you to qualify for a USDA home loan. 

Being a United States citizen

You need to be either a US citizen or permanent resident to participate in a USDA loan program. You can also potentially qualify for a USDA loan if you are an alien who legally resides within the United States. However, having at least permanent residency generally makes the process easier.

Having a credit score of at least 640

There is no minimum credit score for being approved for a USDA loan. That being said, the process is much easier if you have a credit score of at least 640. A lot of lenders offering USDA backed loans require a credit score of at least 640. 

Being dependably employed

Your income needs to be reliable for you to qualify for a USDA loan. If you have only recently started a job, you might have trouble being approved for a USDA loan. However, you will have an easier time getting approved if you have been at the same job for several years already. 

Pursuing a home purchase in an acceptable location

A USDA loan does not necessarily have to be used on a rural property. Homes located in some suburban areas can sometimes qualify for a USDA loan. However, generally speaking, USDA loans need to be used on the purchase of properties in rural areas.

Qualifying with a low enough income

If your income is too high, you may not be able to qualify for a USDA loan. You cannot qualify if your household of up to four people brings in more than $86,850 annually in income. 

Not having any accounts that have gone to collections within the last year

The lender is going to look into your credit history when you apply for a USDA loan. Even if your credit score is relatively high, you still might be disqualified from loan approval if you've had a credit account go to collections within the last year. You also might not qualify if you have late payments on your credit history within the last year.

Intending to live in the property in question

Individuals generally can't qualify for a USDA loan if they're not purchasing a property to serve as their primary residence.

For more information, contact a local USDA loan provider.