USDA Mortgage Loans in Dayton and Cincinnati, Ohio | Carlos Scarpero, Mortgage Loan Officer in Dayton, Ohio, NMLS #1674385

USDA Mortgage Loans in Dayton and Cincinnati, Ohio

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USDA mortgage loans allow borrowers to buy in rural areas with no money down.

Down Payment Required: None
Minimum Credit Score: 640
Income Limit: Varies by area, currently $82,700 in Dayton MSA and $90,050 in the Cincinnati MSA
Other Restrictions: Must purchase in the USDA approved lending area. Click here to view map


Frequently Asked Questions About USDA Mortgage Loans

Are there limits on where I can buy a home with a USDA loan?

Yes. USDA mortgage loans can only done when purchasing a home in an approved rural lending area. Click here to view the map.

What are the credit score requirements for a USDA loan?

We require a minimum credit score of 640 on our USDA loans.  Most mortgage lenders, including PRMG, pull a tri merge report and use the middle score. This score is a different type of score than the one you will see with Credit Karma and may vary as much as 30 points.

How does USDA view Chapter 7 bankruptcy?

There are no specific rules regarding Chapter 7 bankruptcy, but it's hard to get approval if it's been less than 2 years since the discharge date.

Can I get a USDA loan with a Chapter 13 bankruptcy?

For a Chapter 13 bankruptcy, the repayment plan needs to have been paid for at least one year. If it's not yet discharged, court approval will be needed.

Can I get a USDA loan after a foreclosure?

USDA allows you to have a foreclosure on your credit report. However, it must have been at least 3 years since the date the sheriff filed the deed with the county. We will also check court records to make sure everything is cleared out.

What are debt ratio limits on USDA mortgage loans?

USDA also allows a total debt ratio of up to 41%, with a housing ratio of 29% 

What is the minimum down payment required for a USDA mortgage loan?

USDA mortgage loans have no down payment!

How does USDA view chargeoffs on my credit?

It is possible to get approved for USDA financing with chargeoffs on your credit report. These do not need to be paid back before closing.

How are non medical collections handled on USDA loans?

Any unpaid collection account needs to have a payment plan or be paid off before closing. If not, 5% of the unpaid collection balance will be used toward your debt ratio calculation. If your total unpaid collections are $2000 or less, this requirement is waived.

How are medical collections viewed on USDA loans?

Medical collections are ignored in debt ratio calculations and do not need to be paid off before closing.

How does USDA view student loans?

Student loans have special rules when you are applying for USDA financing. When you are on deferment or using income based repayment, 1% of the outstanding loan amount is used for qualifying purposes. Additionally, delinquent student loans that are charged off to the government need to be settled or refinanced.

Can I get a USDA mortgage loan if I have mortgage lates on my credit?

USDA does not have specific rules on the guidelines regarding mortgage lates, but it will be very hard to get approved if you have been on your current mortgage over the past year.

What is GUS?

When applying for a USDA mortgage, the file is submitted to USDA's approval program called Guaranteed Underwriting System (GUS) to make a credit decision. This program takes into account the credit score, the debt ratio and savings (called reserves in the lending industry) to make a yes or no credit decision. Sometimes if the file is close, we can also use manual underwriting to evaluate the file.

Is there a limit to how much I can borrow on USDA?

In the Dayton metro area and most of Ohio, the USDA maximum loan amount is $453,100. 

What is the maximum income for USDA?

Income caps do apply for USDA mortgage loans, which are based on the average income in the community. In the Dayton MSA, this limit for 2018 is $82,700. In the Cincinnati MSA, the limit is $90,050. This income limit is for the total for all wage earners in the home, whether they are on the loan or not. These limits are the same for up to 4 individuals in the home and are slightly higher if more than 5 people will be living in the home.