What is the maximum loan amount of a USDA home loan?
USDA does not have a maximum loan amount. If a borrower can meet the debt-to-income requirements and the household income requirements for a given property they can use the USDA loan to purchase it.
Do I have to be a first-time homebuyer to get a USDA mortgage?
No, you do not need to be a first-time homebuyer to obtain a USDA mortgage. However, the USDA loan product does not typically allow a homebuyer to have move than one home. Buyers must sell their current home before purchasing a new home using the USDA loan program.
What types of properties can be purchased with a USDA Loan?
Single family residence, townhomes, bank owned or foreclosed properties all qualify for a USDA loan.
Does a home buyer have mortgage insurance with the USDA loan?
The USDA home loan has its version of mortgage insurance and called a Guarantee Fee that consists of two parts: an upfront guarantee fee and an annual fee that serves as the monthly mortgage insurance premium for this loan type. The up-front guarantee fee of 1% is added to the loan. There is also a yearly fee that is paid monthly. The yearly fee is .35% and it’s added to the payment monthly.
How can I determine if the home I want to purchase is in a USDA qualifying area?
You can use the USDA eligibility map to determine qualifying areas. Homebuyers can search a specific address or they can do a broader search for certain areas.
Can I put money down on a Georgia USDA mortgage?
Yes, homebuyers can put money down when using the USDA mortgage as their financing. This can help lower the monthly payments. There is a USDA guideline that says if a borrower has enough to put at least 20% down they may not be eligible to obtain a USDA mortgage.
What are the USDA household income limits?
The USDA home loan has a qualification requirement that is called household income limits. By definition, the USDA loan is designed for low to moderate-income households. The household income limit will vary from state to state and county to county but must not exceed the median household income for the area by more than 15 percent. Household size is also taken in account. Ask one of our Mortgage Representatives for specific details regarding income limits in the area you are considering.