Many locations in Georgia are still eligible for 100% USDA rural housing. Homebuyers considering a USDA home loan should first check they meet the USDA loan eligibility requirements. Below is a basic checklist of items that will determine if you are eligible for USDA financing. Keep in mind the program has certain eligibility and qualifying factors. Eligibility factors include things like property location and household income. Qualifying factors include credit, debt to income, etc.
- USDA eligible locations – The property must be located in a USDA eligible zone. Most of Georgia outside of the major metro areas of Atlanta, Macon, and other large cities is currently eligible! The home being purchased must be a single-family home, condo or townhome. Existing mobile homes are not permitted. Borrowers can view the approved map and look up an address on the USDA property map here.
- USDA Income limit – USDA does have household income limitations. These limits are based on the county and the number of members in the household among other things. Keep in mind that USDA household income limits do apply to all members living in the home that receive income, even if they are not listed on the loan application. In addition, any party on the loan application must be able to properly documents income (tax returns, etc) Household income limits can vary based on the family size, number of dependents, etc. Please see the USDA income calculator here. The income limit is $103,500 for a standard family of 1-4 members in most of GA.
- USDA Credit requirements – generally speaking, the buyer’s credit scores should be no lower than 620. Lower scores (down to a 600) can be done on a case-by-case basis. There are additional separate requirements regarding any past bankruptcy, short sale, foreclosure, etc.
- USDA Income and Debt – Borrowers should be able to properly document their income via tax returns and/or W2’s. Buyers debt to income ratios should also be below the set limits – generally no more than 30% of gross income allocated to housing expenses.
Please read more about Georgia USDA Loan Requirments here. Homebuyers that have questions about applying can call us at the number above, or simply submit the Quick Request Form on this page.