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USDA – Borrowers with 20% Liquid Assets May Still Qualify

Rebecca Squyres

June 30, 2021

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Did you know –

Borrowers with 20% liquid assets may still qualify for 100% financing with USDA?

If the borrower has personal non-retirement liquid asset funds of at least 20% of purchase price then perform the below conventional test:

  1. The borrower can, in addition to the 20% down payment, pay all of their closing costs associated with the loan
  2. The borrower can meet qualifying ratios of no more than 28/36 when applying the 20% down payment
  3. The borrower demonstrates qualifying credit for conventional  mortgage loan for a 30 year term without the condition to obtain PMI

A borrower than can answer “NO” to question 1, 2, or 3, may still qualify for USDA! 

For more information contact an USDA Underwriting Team Member