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USDA Home Loans In Georgia

Georgia USDA Home Loans

If you live in Georgia and you’re looking for a great deal on a home loan you may want to take a closer look at the Georgia USDA Loan program. Georgia’s USDA home loan program offers tons of benefits that you won’t find in most other traditional home loan programs. Some of these benefits includes 100% financing, low monthly mortgage insurance premium, and absolutely no down payment. The only real cost upfront are mandatory closing costs which can be financed into your overall amount of the loan, as well as a 2% upfront funding fee which can also be added to the overall loan amount. This means that once you pay for your home inspection, appraisal, and all the necessary taxes, you can basically purchase and move into a USDA approved home with little to no money upfront. You won’t find that deal anywhere else.

Property Eligibility for USDA Home Loans in Georgia

USDA Home Loans in Georgia are only eligible for properties that are currently located in a USDA eligible rural areas. USDA eligible rural areas are defined as any area that is rural in nature, or has less than 25,000 people, depending on your county. While USDA home loans have long been considered farmer’s loans, this is far from the case. There are actually tons of USDA eligible properties around Atlanta, Savannah and Augusta as long as you know where to look. The only counties that are entirely ineligible in the state of Georgia are Bibb, Clarke, Clayton, Cobb, Dekalb, Fayette, Gwinnett, Muscogee, Richmond and Rockdale.

Under Section 502 of the USDA home loan program, the property you’re choosing must be modest is size, design, and cost. Every home must meet all acceptable building codes and requires a mandatory home inspection prior to getting approved.

Income Eligibility

In order to be eligible for a Georgia USDA home loan you must first meet certain household income requirements. Because the Georgia USDA home loan program was created to assist middle to low income households purchase a new home, there are specific income limits in place to ensure that these loans are only going to families or individuals in need. In order to qualify for a Georgia USDA home loan your overall total household income must not exceed 115% of the average median income for that area. If your income is well below this threshold you may be eligible for a USDA Direct rural housing loan which are only available for low and very low income households defined as between 50-80% of the average median income.

Other Eligibility Guidelines

To be eligible for a USDA home loan in the state of Georgia your monthly housing costs including mortgage principal, interest, insurance, and property taxes must meet a specified percentage of your gross monthly income. Also, your credit background will be reasonably considered and you will need to have at least a 640 credit score to get approved by most lenders. However, some lenders will go as low as 580 depending on your current financial situation. You will need to have enough income to be able to pay all your housing costs every month, as well as any previous debt you may still owe.

For more information contact your trusted USDA home lender.