If you are shopping for a home in Paw Paw, you might be closer to buying than you think. Many homes in Morgan County can qualify for a USDA loan, which often means no required down payment and a predictable fixed rate. Still, figuring out income limits, property rules, and lender expectations can feel confusing at first. This quick guide shows you how to check eligibility fast, what documents to gather, and the exact steps to take next in Paw Paw. Let’s dive in.
USDA loans, in plain English
USDA Rural Development’s Single Family Housing Guaranteed Loan Program helps eligible buyers purchase modest primary homes in qualifying rural areas. The program works through approved private lenders, and USDA provides a guarantee to reduce the lender’s risk.
- Common benefits: 100% financing, widely available fixed-rate options, and primary residence occupancy.
- Focus for you: This guide covers the USDA Guaranteed program used through private lenders.
- Where to verify details: Review the USDA overview of the Single Family Housing Guaranteed Loan Program.
Who qualifies in Morgan County
Applicant and occupancy basics
You must plan to live in the home as your primary residence. You also need to show the ability to repay through steady income and acceptable credit history. Citizenship or qualified residency status is required.
Income limits by household size
USDA sets maximum income by county and household size. Morgan County has its own limit. Because these figures change, you should use USDA’s income eligibility lookup to confirm your household’s status for Morgan County before you assume you qualify. Check the most recent tool on the USDA Rural Development site and select Morgan County, WV.
Credit and DTI expectations
USDA does not publish one minimum credit score for the Guaranteed program. In practice, many approved lenders use their own overlays, with common minimums in the low to mid 600s. Lenders also review your total debt-to-income ratio. Many target totals near the low-to-mid 40 percent range, though stronger compensating factors can allow flexibility. Since overlays vary, talk with a USDA-experienced local lender to understand their specific requirements.
Property eligibility in Paw Paw
How “rural” is defined
USDA decides eligibility by mapping specific areas, not by a general town label. Many parts of Morgan County qualify due to low population density. To confirm any specific address, use the USDA Property Eligibility Map and type in the street address.
Property types and standards
USDA financing is for modest single-family residences. Some condos may qualify when the project meets program standards. Manufactured homes may be eligible if they are permanently affixed, meet program and local code standards, and appraise appropriately. The home must meet minimum property requirements verified by appraisal and, when needed, inspections. Environmental and hazard reviews apply, and flood insurance may be required in certain flood zones.
Quick local examples
- In-town Paw Paw single-family home: Often eligible if the exact address returns “eligible” on USDA’s map and your household income is within the Morgan County limit for your household size.
- Rural acreage near town: Modest residential acreage is often fine. Large tracts intended for commercial agriculture or substantial income generation may not fit USDA’s “modest housing” intent.
- Manufactured home on a small parcel: Possible if permanently affixed and compliant with program and lender standards. Lender overlays may apply.
Always confirm the exact parcel on the USDA map before you decide.
How to check eligibility fast
Step-by-step for Paw Paw buyers
- Look up the address on the USDA Property Eligibility Map to confirm location eligibility.
- Use USDA’s income eligibility lookup for Morgan County to check your maximum allowable household income for your household size. Find the current tool on the USDA Rural Development site.
- Speak with an approved USDA lender about credit score minimums, debt-to-income targets, and any overlays they apply locally.
- Review property condition items common in rural settings. For homes with well and septic, plan for documentation or updates to meet minimum property requirements.
- Get prequalified or preapproved before you write an offer so you know your price range and timeline.
For West Virginia program contacts and general assistance, visit the USDA Rural Development West Virginia office page.
What to prepare for lenders
Documents for employed borrowers
- Photo ID and Social Security number(s)
- Last 2 years of W‑2s and recent pay stubs covering at least 30 days
- Last 2 years of federal tax returns if you have additional income sources
- Bank statements for the last 2 months
- Retirement or investment account statements for reserves
- Documentation for other income sources if counted
- Current lease and rental history, if applicable
- List of debts such as student loans, auto loans, and credit cards
- Signed purchase agreement once you are under contract
If you are self-employed
- Last 2 years of full personal and business tax returns with all schedules
- Year-to-date profit and loss statement and balance sheet, if required
- Evidence of business continuity, such as recent invoices or contracts
- K‑1s for partnerships or S‑corporations
Special items to organize
- Gift funds: Gift letter, donor bank statements, and relationship documentation
- Large deposits: Written explanations and source documentation
- Credit report: Review for accuracy and address errors before applying
- Appraisal and inspection: Your lender orders the appraisal. A home inspection is strongly recommended, especially for well/septic and older rural homes
Smart prep tips
- Pull your credit report early and know your score range
- Avoid taking on new debt during underwriting
- Document variable income with a 2-year history where possible
- Compare two or three USDA-experienced lenders, since overlays and fees vary
For general mortgage shopping guidance, explore consumer resources from the Consumer Financial Protection Bureau.
Costs and fees to expect
USDA Guaranteed loans are designed to allow zero down payment for eligible buyers and properties. You are still responsible for closing costs. In many cases, closing costs can be paid by the seller, gifted by an eligible donor, or in some cases financed if the appraised value allows and the lender’s rules permit. The USDA program also includes an upfront guarantee fee and an annual fee that changes from time to time. To understand current fee structures, review the USDA Guaranteed Loan Program page and confirm details with your lender.
Condo and manufactured-home notes
Condominiums require project-level eligibility. Many condo projects do not meet program standards, so confirm early with your lender. Manufactured homes can be eligible if they meet permanent foundation, title, code, and appraisal requirements. Learn more about high-level considerations from HUD’s consumer resources, then verify with your lender because lender overlays may apply.
Next steps for Paw Paw buyers
- Step 1: Enter the exact address on the USDA eligibility map.
- Step 2: Check your Morgan County income limit by household size using USDA’s income tool.
- Step 3: Assemble your documents and review your credit report.
- Step 4: Speak with two or three USDA-experienced lenders about overlays, fees, and timelines.
- Step 5: If you have questions, contact the West Virginia USDA RD office or a HUD-approved housing counselor.
Ready to explore USDA-eligible homes around Paw Paw and greater Morgan County, or compare your financing options in context with the local market? Kesecker Realty, Inc. combines local insight with hands-on guidance to help you move from eligibility check to keys in hand. Contact a local agent today.
FAQs
What is a USDA Guaranteed Loan for Paw Paw buyers?
- It is a USDA Rural Development program that works through approved private lenders to help eligible households buy modest primary homes in qualifying rural areas.
How do I know if a Paw Paw address is eligible?
- Enter the exact address on the USDA Property Eligibility Map and confirm current eligibility.
What income limits apply in Morgan County?
- USDA sets a maximum by county and household size. Use USDA’s income eligibility lookup on the Rural Development site and select Morgan County, WV for current figures.
Is there a minimum credit score for USDA loans?
- USDA does not publish one minimum score for Guaranteed loans. Many lenders use overlays, commonly in the low-to-mid 600s. Ask local lenders about their requirements.
Can I buy with zero down in Paw Paw using USDA?
- Yes, the program is designed to permit 100% financing for eligible buyers and properties, subject to lender overlays.
What closing costs will I pay with a USDA loan?
- You will have closing costs. They may be paid by the seller, gifted, or sometimes financed if the appraisal and lender allow. Verify with your lender.
Are manufactured homes and condos allowed under USDA?
- Manufactured homes can be eligible when permanently affixed and compliant with program standards. Condos require project-level approval, which many projects do not have. Confirm early with your lender.
Do USDA loans have mortgage insurance?
- USDA charges guarantee fees, including an upfront fee and an annual fee. Fee levels can change, so confirm current amounts on the USDA program page or with your lender.
