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Owasso USDA Loan

Scissortail Financial offers USDA loans in Owasso with zero down payment and competitive rates. We’ll help you navigate the process effortlessly.

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What is a USDA Loan?

A USDA loan is a government-backed mortgage program designed to help buyers purchase homes in eligible rural and suburban areas with zero down payment. The U.S. Department of Agriculture offers these loans to make homeownership more accessible by providing affordable interest rates, lower mortgage insurance, and flexible credit requirements.

Why Consider a USDA Loan?

  • 100% financing available – No down payment is required.
  • Lower monthly payments – Competitive interest rates and reduced mortgage insurance.
  • Flexible credit requirements – Designed for moderate-income borrowers.
  • Rural and suburban home eligibility – Many homes in Owasso and surrounding areas qualify.

For buyers in Owasso, a USDA loan can make homeownership more affordable. Scissortail Financial can help you determine eligibility and guide you through the process.

Check Your Eligibility

Owasso USDA Loan Requirements

To qualify for a USDA loan in Owasso, borrowers must meet specific property, income, credit, and employment requirements.

Property Eligibility

The USDA program is location-specific, meaning the home must be in a designated rural or suburban area. While some neighborhoods within Owasso may not qualify, many homes in outlying areas or nearby communities do. Additional property requirements include:

  • The home must be a primary residence (no second homes or investment properties).
  • The property must be in livable condition, free from major structural issues.
  • An appraisal must confirm that the home meets USDA standards for health, safety, and functionality.

Not sure if your property qualifies? Scissortail Financial can check eligibility for you.

Credit Score Requirements

While USDA loans do not have a set minimum credit score, most lenders look for a 640+ score for easier approval. Borrowers with lower scores may still qualify but will need to show:

  • A consistent history of on-time payments.
  • A low debt-to-income (DTI) ratio or additional financial reserves.
  • Documentation explaining any past financial difficulties.

Debt-to-Income Ratio (DTI) Limits

USDA guidelines generally require a maximum DTI of 41%, meaning total monthly debt—including the mortgage payment—should not exceed 41% of gross income. However, borrowers with strong credit scores or additional financial resources may qualify with a higher DTI.

Employment & Income Verification

Applicants must show a steady income history of at least two years. Lenders require proof of income through:

  • Recent pay stubs covering at least 30–60 days.
  • W-2 forms or tax returns from the last two years.
  • Profit-and-loss statements for self-employed borrowers.
  • Additional income verification, such as retirement, disability, or Social Security benefits.

Employment gaps are not an automatic disqualifier, but lenders will need an explanation for any significant breaks in employment.

Mortgage Insurance (Guarantee Fees)

Instead of private mortgage insurance (PMI), USDA loans require:

  • A 1% upfront guarantee fee, which can be added to the loan amount.
  • An annual 0.35% guarantee fee, included in monthly mortgage payments.

These fees are significantly lower than FHA mortgage insurance, making USDA loans a cost-effective choice for eligible borrowers.

Check Your Eligibility

Owasso USDA Loan Income Limits

Because USDA loans are intended for moderate-income households, there are income limits for qualification. These limits consider the total income of all adults in the household, even if they aren’t on the loan application.

  • 1-4 person household: $112,450
  • 5+ person household: $148,450

If a household’s income exceeds these limits, certain deductions may reduce adjusted income, allowing borrowers to qualify. These deductions include:

  • Childcare expenses
  • Medical costs for elderly or disabled household members
  • Other eligible deductions

If you’re unsure whether your income qualifies, Scissortail Financial can assist in determining your eligibility.

Check Your Eligibility

Owasso Loan Programs

Scissortail Financial offers multiple home financing solutions for buyers in Owasso, ensuring a variety of options to meet your needs.

USDA Loans

A great option for buyers in eligible areas, USDA loans provide 100% financing, lower interest rates, and reduced mortgage insurance costs compared to other loan programs.

Conventional Loans

For buyers who don’t meet USDA eligibility, conventional loans offer flexible loan terms and competitive rates. With a minimum down payment of 3%, this is a great alternative for qualified borrowers.

FHA Loans

FHA loans are a popular option for buyers with lower credit scores or limited savings for a down payment. With as little as 3.5% down, FHA loans provide an accessible mortgage solution.

VA Loans

For eligible veterans, active-duty service members, and their families, VA loans offer zero-down financing, no PMI, and some of the best mortgage terms available.

Refinance Loans

Homeowners can refinance to lower monthly payments, secure better interest rates, or access home equity. The USDA Streamline Refinance Program is available for eligible borrowers.

First-Time Home Buyer Programs

Owasso first-time homebuyers may qualify for special financing options, including down payment assistance, lower mortgage insurance, and flexible approval requirements.

Investment Property Loans

For buyers looking to purchase rental properties, investment property loans provide tailored financing solutions for real estate investors.

Second Home Loans

If you’re considering a vacation home or secondary residence, Scissortail Financial offers competitive financing solutions with flexible terms.

Check Your Eligibility

FAQ's

Owasso USDA Loan FAQs

Who qualifies for a USDA loan?

While the USDA does not set a minimum credit score, most lenders prefer a minimum credit score of around 640 for a smoother approval process.

Do USDA loans require a down payment?

No, USDA loans offer 100% financing, meaning you can purchase a home without a down payment.

Can I use a USDA loan to buy a home in Oklahoma City?

Some areas within Oklahoma City may not qualify, but many outlying neighborhoods and surrounding communities are eligible. Scissortail Financial can help you check USDA eligibility for specific properties.

What credit score do I need for a USDA loan?

Most lenders prefer a 640 or higher credit score for streamlined approval, but borrowers with lower scores may still qualify with additional documentation and compensating factors.

Are there income limits for USDA loans?

Yes. To qualify, household income cannot exceed:

  • 1-4 person household: $112,450
  • 5+ person household: $148,450

USDA considers the income of all adult household members, even if they are not on the loan.

Can I refinance my USDA loan?

Yes, USDA loans can be refinanced through the USDA Streamline Refinance Program, which reduces paperwork and allows eligible borrowers to lower their interest rates.

 

What are the mortgage insurance costs for USDA loans?

Instead of traditional mortgage insurance, USDA loans require:

  • Upfront Guarantee Fee: 1% of the loan amount (can be rolled into the loan).
  • Annual Fee: 0.35% of the remaining loan balance, paid as part of your monthly mortgage payment.
Can I use a USDA loan for a second home or investment property?

No, USDA loans are only for primary residences. They cannot be used for vacation homes, second homes, or rental properties.

Are USDA Loans Only for First-Time Homebuyers?

No, USDA loans are available for both first-time and repeat homebuyers, as long as they meet the income and property eligibility requirements.

How long does it take to close a USDA loan?

The typical closing time for a USDA loan is 30-45 days, depending on the lender, property eligibility, and loan processing time.

Check Your Eligibility

You already have enough on your plate. Leave the mortgage up to us. The experts at Scissortail Financial will arm you with helpful mortgage information plus other valuable resources to help make buying your home quick and easy!

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Scissortail Financial, LLC © 2024. All Rights Reserved. (918)495-3773 

Licensed In : Oklahoma

Cost and fees may vary. Information is subject to change without notice. This is not an offer for extension of credit or a commitment to lend. All loans subject to credit approval and secured by real estate.

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You already have enough on your plate. Leave the mortgage up to us. The experts at Scissortail Financial will arm you with helpful mortgage information plus other valuable resources to help make buying your home quick and easy!

Quick Links

Our Services

Facebook Google

Scissortail Financial Home Loans

Scissortail Financail Home Loans © 2023. All Rights Reserved. (918)495-3773 

Licensed In : Oklahoma

Cost and fees may vary. Information is subject to change without notice. This is not an offer for extension of credit or a commitment to lend. All loans subject to credit approval and secured by real estate.

Company NMLS # 2466406

NMLS Consumer Access

Privacy Policy

Terms & Conditions

Sitemap

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