What Are The Qualifications For A USDA Rural Energy Plus Loan?
Did you know that a USDA Rural Energy Plus Loan is available for those who purchase energy efficient homes?
Today’s topic is very unique, because we are going to cover how to qualify for a USDA Rural Energy Plus Loan and the benefits it can provide when purchasing a home.
What kinds of homes qualify for a Rural Energy Plus Loan? Well…
New homes must be built to meet the 2006 IECC (the International Energy Conservation Code) or meet with a comparable code.
Existing homes that meet or are retrofitted to meet the 2006 IECC or comparable code are also eligible. Typically an energy audit, home inspection or other acceptable documentation will determine the home meets the applicable code.
The lender must certify the home meets the 2006 IECC or comparable code, and once confirmed, it will allow the applicant to expand the USDA qualifying ratios to the following:
Currently USDA published debt ratios are 29% for housing and 41% for total expenses (29%/41%). However, when purchasing with a USDA Rural Energy Plus Loan it will allow expanded debt ratios to 31%/43% without the need for a Debt Ratio Waiver.