Georgia is the ninth most populated state in the U.S. and as you can guess, it’s a busy scene when it comes to buying homes. If you are one of those looking to buy a home in Georgia, USDA loans are the most affordable and easy financing option for you. USDA home loans are available for a wide variety of properties or you can even build a new home if that’s what you want.
If you’re buying pre-used home, you can include the repair and renovation costs within the loan. USDA home loans are approved for properties that are located in the USDA approved rural areas, but that does not mean you have to stay in the farmlands. Some of the semi-urban areas are also included under the USDA area list. USDA loans require no down payments, have the lowest interest rates, the most flexible credit requirements and minimum closing costs.
At USDA Home Loans, we have catered to the needs of many families in Georgia and have faced one basic question: What is the maximum loan limit or how much can I borrow from USDA loans? We are sure many of you have the same question in mind. You’ll find your answers here.
The Maximum Limit for USDA Loan for Georgia Home Buyers
The Agriculture Department of U.S has not set any maximum loan amount that can be provided to a borrower. The maximum loan that will be sanctioned to you will be determined based on various factors. These include:
- Debt to income ratio
- Credit score
- Income and assets
- Previous mortgage or rental payment history
According to USDA, the borrower’s housing expenses should not exceed 29% of the total monthly income. The housing expenses along with other payments (like tax, car loans, etc) should not exceed 41% of the total monthly income. In other words your debt-to-income ratio should be 29/41%. Along with this, you need to have a FICO score that is above 620. USDA has preset area median income (AMI) for each area, so your monthly income should be at or below the AMI for your area.
Some more FAQs about USDA loans
Here are answers to some most common questions that we face when talking to people about USDA home loans. This will simplify the whole concept of USDA loans for you:
- Are USDA home loans for first time buyers only?
Ans: No, USDA home loans are not just for first time owners. Repeat buyers can also get USDA loans, in fact, USDA has no restrictions on the previous homeownership status.
- Are USDA Guaranteed home loans for low income borrowers only?
Ans: Not at all. USDA guaranteed loans are for moderate to low-income groups. The income limits, preset by USDA, can increase for a family of 4 or more. So talk to us about the eligibility if you want to take a USDA home loan.
- Do I get a USDA loan if I’ve had a bankruptcy?
Ans: You are eligible for a USDA loan if you’ve been discharged from the Chapter 7 bankruptcy for 3 or more years. If you belonged to the Chapter 13 bankruptcy and have successfully made on-time court approved payments for 1 year, you can get a USDA loan.
- What type of loan is approved by USDA?
Ans: All USDA loans are fixed rate loans. Fixed rate means the interest rate will remain the same throughout the tenure of the loan. You’ll know how much you have to pay every month.
- Can closing costs be included in the loan?
Ans: Yes. The difference between the appraisal value and contract price can be used for financing the closing costs.
So now you have a clear idea about what the USDA home loans are all about. If you have further questions, don’t hesitate to ask us. We’re just a phone call away!