How to Determine USDA Home Prequalification

Request a copy of your credit report from the three large credit reporting agencies, TransUnion, Experian and Equifax. You can get a free report for all three from annualcreditreport.com once each year. Check your credit report for collections and other delinquent accounts. While the USDA program does not have a minimum credit score requirement, you do need to explain bad credit marks within the last few years.

Check pay stubs, tax returns or bank statements to determine your monthly income. The USDA program looks for a 33 percent debt-to-income ratio for mortgage qualification. This means that the mortgage payment should not exceed 33 percent of total monthly income. For very low-income borrowers, USDA mortgages may subsidize part of the mortgage payment. In all cases, the house needs to be the owner's primary residence.

Compare your monthly income with income limits for your area on the USDA income eligibility site. Income limits are based on poverty levels and median income for your county so you'll need to check your specific location.

Check addresses of prospective properties against the allowable areas for the USDA loan program. Since USDA loans target properties in rural locations, not all properties are eligible to be financed.