USDA Home Loans Durham NC Tips

Part of Durham County, NC qualifies for USDA mortgages – and the qualifying guidelines have recently changed!  We will cover as many USDA Home Loans Durham NC tips as we can – but feel free to reach out to us for more information.

To see maps specific to where you can find a home that qualifies for this 100% financing in Durham, click here

The maximum income is calculated per family members living at home. In general, USDA Home Loans Durham meet different income guidelines than other areas in North Carolina.

The current guidelines are:

• 1 person in the household maximum income is $116,300

• 2 people in the household maximum income is $116,300

• 3 people in the household maximum income is $116,300

• 4 people in the household maximum income is $116,300

• 5 people in the household maximum income is $153,500

In addition to this – the property needs to be located in a qualified (less densely populated area).  If you want to see if the property you are interested in is qualified for a USDA 100% home loan – click here!

Most mortgage programs require us to count some form of Student Loan debt in our qualifying Debt to Income ratios.    USDA Home Loan NC underwriters are diligent, but know that many student loans are in some sort of deferment status.

Student Loan Debt and USDA Home Loans Durham, NC

If you’re a first time home buyer in Durham, NC, and have student loan debt—you’re definitely not alone. In fact, over 70% of the buyers we help have some form of student loans, and it’s one of the biggest topics we talk about during pre-approval. With the rising cost of education and recent economic challenges, it’s no surprise that many families had to dip into savings, leaving student loan balances even higher than expected.

The good news is: you can still qualify for a USDA Home Loan with student loan debt, even if your loans are deferred.

USDA underwriting guidelines are pretty specific. For any deferred student loan, we are required to count 0.5% of the loan balance as a monthly debt—even if your payment right now is $0. So, if you have $30,000 in student loans, we have to count $150/month in your debt-to-income ratio unless we can show official documentation from your loan servicer that proves you’re on a fixed repayment plan.  You can go on a fixed repayment plan (we underderstand) with some Servicers, and then after you buy your home, you can go BACK to another program that works better for your monthly debt.

💡 Important: Income-Based Repayment (IBR) or PAYE plans often change over time. If your payment is currently $0, USDA Home Loans Durham guidelines say we cannot use that figure unless the plan is fixed and not subject to change.

We can help you gather the paperwork needed to get a clearer picture of what your future payments might be. In some cases, consolidating your loans or switching to a fixed payment plan can help you qualify for more house.

One Durham client we worked with had co-signed student loans with her daughter. We were able to show 12 months of cancelled checks from the daughter proving she made the payments—and that meant we didn’t have to count the debt in the Mom’s application at all!

Bottom line: Student loans don’t automatically disqualify you. But how they’re structured matters—a lot. If your loans are deferred or you’re on an income-based plan, let’s talk early. The sooner we review your loan details, the smoother your home-buying journey in Durham will be.

Want help understanding how your student loans impact USDA Home Loan approval? Call Steve and Eleanor Thorne at 919-649-5058. We’ll walk you through every step!

If you have questions about purchasing a home using a USDA Mortgage – please call  Steve and Eleanor Thorne at 919-649-5058 | Connect With Us on Facebook!