Zero-down USDA Guaranteed Loans are the most popular rural development mortgage program in Missouri. These loans are available for anyone with low to moderate income to purchase a home in approved rural areas with no down payment.  The USDA Guaranteed Loan Program is also the favorite no-down payment mortgage in Missouri for non-veterans today, and can be used for a broader range of applicant incomes than USDA Direct Loans.

What are Missouri USDA Loans?

The USDA loan program was created by the United States Department of Agriculture Rural Development, also known as “USDA RD”. USDA Guaranteed Loans (also known as USDA Section 502 Guaranteed Loans) are a mortgage program for low and moderate income mortgage applicants. Missouri USDA loans provide low-cost, government insured mortgage options that suit a variety of home buying needs. The most common mortgages offered through USDA are known as “Guaranteed” loans. USDA Guaranteed Loans are 100% financing mortgages, which means you can use them to buy a home with no down payment.

Missouri USDA Loan Requirements

USDA loan requirements mainly focus on the home loan applicant and the property. First off, the home must be located in an approved rural areas to be considered eligible for USDA financing. Second off, the home buyer must meet all income requirements set forth by USDA. These income limits are established through a combination of debt-to-income ratios and income ceilings that equal 115% of the area median income (AMI) for the particular area. Statewide, Missouri carries a median household income of $55,461, but that can vary from county to county. Ultimately, the applicant must also meet all lender requirements for mortgage approval which include:

  • Credit Requirements
  • Income Requirements
  • Documentation Requirements

Missouri USDA Loan Limits

USDA doesn’t set specific maximum loan amounts for guaranteed mortgages. Instead, local limits are determined by a combination of the area USDA maximum income limit and the borrower’s debt-to-income ratios. This approach means that guaranteed Missouri USDA loan limits are fluid and based upon numerous factors. The limits listed below are based on approximate calculations. Actual guaranteed loan limits may vary.

Area
1-4 Person Households
5-8 Person Households
Adair County, MO$306,000$391,000
Atchison County, MO$306,000$391,000
Audrain County, MO$306,000$391,000
Barry County, MO$306,000$391,000
Barton County, MO$306,000$391,000
Bates County, MO HUD Metro FMR Area$306,000$391,000
Benton County, MO$306,000$391,000
Butler County, MO$306,000$391,000
Callaway County, MO HUD Metro FMR Area$306,000$391,000
Camden County, MO$306,000$391,000
Cape Girardeau County, MO SEA$306,000$391,000
Cape Girardeau, MO-IL MSA$306,000$391,000
Carroll County, MO$306,000$391,000
Carter County, MO$306,000$391,000
Cedar County, MO$306,000$391,000
Chariton County, MO$306,000$391,000
Clark County, MO$306,000$391,000
Columbia, MO MSA$323,000$417,000
Cooper County, MO$306,000$391,000
Crawford County, MO$306,000$391,000
Dade County, MO$306,000$391,000
Dallas County, MO HUD Metro FMR Area$306,000$391,000
Daviess County, MO$306,000$391,000
Dent County, MO$306,000$391,000
Douglas County, MO$306,000$391,000
Dunklin County, MO$306,000$391,000
Gasconade County, MO$306,000$391,000
Gentry County, MO$306,000$391,000
Grundy County, MO$306,000$391,000
Harrison County, MO$306,000$391,000
Henry County, MO$306,000$391,000
Hickory County, MO$306,000$391,000
Holt County, MO$306,000$391,000
Howard County, MO$306,000$391,000
Howell County, MO$306,000$391,000
Iron County, MO$306,000$391,000
Jefferson City, MO HUD Metro FMR Area$306,000$391,000
Johnson County, MO$306,000$391,000
Joplin, MO MSA$306,000$391,000
Kansas City, MO-KS HUD Metro FMR Area$340,000$431,000
Knox County, MO$306,000$391,000
Laclede County, MO$306,000$391,000
Lawrence County, MO$306,000$391,000
Lewis County, MO$306,000$391,000
Linn County, MO$306,000$391,000
Livingston County, MO$306,000$391,000
Macon County, MO$306,000$391,000
Madison County, MO$306,000$391,000
Maries County, MO$306,000$391,000
Marion County, MO$306,000$391,000
McDonald County, MO HUD Metro FMR Area$306,000$391,000
Mercer County, MO$306,000$391,000
Miller County, MO$306,000$391,000
Mississippi County, MO$306,000$391,000
Moniteau County, MO HUD Metro FMR Area$306,000$391,000
Monroe County, MO$306,000$391,000
Montgomery County, MO$306,000$391,000
Morgan County, MO$306,000$391,000
New Madrid County, MO$306,000$391,000
Nodaway County, MO$306,000$391,000
Oregon County, MO$306,000$391,000
Ozark County, MO$306,000$391,000
Pemiscot County, MO$306,000$391,000
Perry County, MO$306,000$391,000
Pettis County, MO$306,000$391,000
Phelps County, MO$306,000$391,000
Pike County, MO$306,000$391,000
Polk County, MO HUD Metro FMR Area$306,000$391,000
Pulaski County, MO$306,000$391,000
Putnam County, MO$306,000$391,000
Ralls County, MO$306,000$391,000
Randolph County, MO$306,000$391,000
Reynolds County, MO$306,000$391,000
Ripley County, MO$306,000$391,000
Saline County, MO$306,000$391,000
Schuyler County, MO$306,000$391,000
Scotland County, MO$306,000$391,000
Scott County, MO$306,000$391,000
Shannon County, MO$306,000$391,000
Shelby County, MO$306,000$391,000
Springfield, MO HUD Metro FMR Area$306,000$391,000
St. Clair County, MO$306,000$391,000
St. Francois County, MO$306,000$391,000
St. Joseph, MO-KS MSA$306,000$391,000
St. Louis, MO-IL HUD Metro FMR Area$323,000$417,000
Ste. Genevieve County, MO$306,000$391,000
Stoddard County, MO$306,000$391,000
Stone County, MO$306,000$391,000
Sullivan County, MO$306,000$391,000
Taney County, MO$306,000$391,000
Texas County, MO$306,000$391,000
Vernon County, MO$306,000$391,000
Washington County, MO$306,000$391,000
Wayne County, MO$306,000$391,000
Worth County, MO$306,000$391,000
Wright County, MO$306,000$391,000

Additional USDA Limits

What is the maximum amount that I can borrow with a USDA Loan?

The maximum amount for a USDA home loan in Missouri is determined by:

  • Maximum Loan Amount: There’s no set maximum loan amount for USDA rural home loans in MO. Instead, your debt-to-income ratios dictate how much home your can afford (29/41 ratios). Additionally, your total household monthly income must be within USDA allowed maximum income limits for your area. Maximum USDA Guaranteed Loan income limits for all areas can be found at here.
  • Maximum Financing: The maximum USDA Rural Development Loan amount in MO is 100% of the home’s appraised value plus the 1% USDA RD Loan guarantee fee.

What types of loans does USDA offer in Missouri?

Two USDA home loan options are presently available in Missouri for single family households. These programs are backed by the U.S. Department of Agriculture by way of its Rural Development Housing Loans:

  • Missouri USDA Guaranteed Home Loans – Guaranteed Loans the most common Rural Housing Loans in Missouri, because they accommodate higher income limits and 100% financing for home purchases. USDA Guaranteed applicants may have an income of up to 115% of the median household income for the area, which average $55,461 across the state. Specific area income limits for the program can be viewed here. All USDA Guaranteed Loans carry 30 year terms and are set at a fixed rate.
  • Missouri USDA Direct Home Loans – USDA Direct Housing Loans in Missouri are less common than USDA Guaranteed Loans and are only available for low and very low income households to obtain homeownership, as defined by the USDA. Very low income is defined as below 50 percent of the area median income (AMI); low income is between 50 and 80 percent of AMI; moderate income is 80 to 100 percent of AMI. Click here to see area income limits for this program.

What factors determine if I’m eligible for a USDA Loan in Missouri?

To be eligible for a USDA loan in Missouri, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income (29% ratio). Your credit background will be fairly considered. A 620 FICO credit score is generally required to obtain a USDA Rural Housing Loan approval through most lenders. You must also have enough income to pay your housing costs plus all additional monthly debt (41% ratio). These ratios can be exceeded somewhat with compensating factors. Applicants for loans may have an income of up to 115% of the median income for the area. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance.

How much money will I need for the down payment and closing costs?

Rural Development Mortgages in Missouri require no down payment and they allow for the closing costs to be included in the loan amount (appraisal permitting).

What property types are allowed for USDA Mortgages?

While USDA Guidelines do require that the property be Owner Occupied (OO), they also allow you to purchase condos, planned unit developments, manufactured homes, and single family residences.

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