Purchasing a home can be particularly challenging when faced with multiple lending programs, creditors, and companies waiting to offer long-term mortgages. Buyers can soon become overwhelmed with unanswered questions as it relates to the USDA's Single Family Housing Program. Here's a list of questions and answers to help in the home purchase process.

Question: How much do I need to earn to qualify for a loan?
Answer: There is no set amount. The loan amount you can qualify for is based on your income and debts.

Question: How long do I have to be on my job?
Answer: There is no time limit, however, you must be able to provide a two-year work history in the same line of work, unless you have attended school or college for another trade.

Question: Do you count the income of everyone in the household?
Answer: All household income is counted for income eligibility purposes, however, only the applicant's income is counted for repayment.

Question: Do I have to have good credit?
Answer: Yes, in today's climate of economic struggles you do need good credit although the program is not credit score driven. If you have a middle credit score of 640, your credit history is automatically considered acceptable. If your middle score is below 640, a loan specialist must review your credit file for adverse credit. They will work with you to eliminate and/or explain all credit issues.

Question: What do you consider good credit?
Answer: Good credit is no unpaid collection accounts, if you do have unpaid collections, it must have been 6 months since they were paid. Judgments are unfavorable, however , if you have had a judgment, it must have been 12 months since it was paid and you should not have had any late payments within the past 12 months. It must have been three (3 )years since a bankruptcy has been discharged.

Question: What if I don't have any credit?
Answer: We can use alternative credit history such as: phone bills, utility bills, rent, life insurance, car insurance, etc.

Question: I already own a trailer or house and I want to buy a house can I do that?
Answer: RD program does not allow you to own two (2) homes. You would have to sell your prior home before closing. If the home is inadequate it must be torn down.

Question: Is the program for single parents?
Answer: No, the Section 502 Direct Single Family Housing Program means one house per family. You do not have to have children or be single. You must meet the income and credit guidelines.

Question: Do I have to pay anything out of pocket?
Answer: Yes, you have to pay your first year homeowner's insurance in advance. If you purchase an existing home, you will have to pay for a home inspection report, appraisal fee, flood insurance if applicable , escrow contributions , tax service fee and survey. If you build a house you will have to pay for plans and the survey.

Question: Do I have to take a homebuyer education class?
Answer: Yes, RD will give you a list of approved providers and you must attend classes from one of the approved providers.

Question: Can I purchase a manufactured home?
Answer: Yes, but you must purchase the home from an approved contractor.

Question: Can I purchase a used, manufactured home?
Answer: No, you cannot purchase a used manufactured home. It must be new. It can be single or doublewide.

Question: Can I put a manufactured home on family property or a manufactured home lot?
No, you cannot place the home on family property or a manufactured home lot. The mortgage is placed on the home and the lot. Therefore you must purchase the lot.

The Center for Rural and Small Business Development offers home buyers education workshops in East Feliciana, Iberville, St. Helena, St. Landry, Evangeline and Tangipahoa parishes.

Contact: Eual Hall, Business Development Specialist, (225) 771-2242 ext. 289, eual_hall@suagcenter.com for more information and workshop dates.