USDA loans Georgia are unique mortgage loans given or guaranteed by the Rural Housing Service Agency of the US Department of Agriculture to help very low to middle-income households to buy safe and affordable housing in rural areas in Georgia.
So, If you are looking to buy a home in rural Georgia, the USDA is the perfect choice for you at the moment of writing this post. U.S. Department of Agriculture AKA USDA has helped so many Americans become proud homeowners and contributed to reducing the rate of people becoming homeless.
If you can recall it, there is a nice example of USDA helping low to middle-income households in the year 2016. It was when the USDA invested nearly 20 billion dollars to help around 140,000 families buy homes.
Why USDA Loans Georgia is Unique?
USDA loan programs offer low interest rates and most importantly most of the time there is no down payment required. This makes it one of the best options for any Georgia home buyer with a low to middle-income, looking to save upfront costs.
If you are planning to buy a home in most of Georgia, outside of the immediate area of Augusta, Atlanta, Columbus, and Macon then there is some great news for you! Because it is highly likely that you are getting a USDA mortgage with zero down payment.
Please refer to the USDA map of Georgia. The ineligible locations for USDA loans are in a shade gray color on the map. USDA loans Georgia applicants can refer to the USDA map of property eligibility here.
Below is a list of benefits that you get when applying for a USDA Loan
- There is absoutely NO down payment whatsoever – Just Finance your home 100% (Conditions Apply!).
- There is no maximum loan amount you can obtain in Georgia.
- You don’t have to produce assest to get qualified.
- Credit guidelines are flexible.
- You get fixed interest rates, therefore installment payments do not increase with time. Find your mortgage monthly installment information by using this calculator.
- You can get USDA Loans Georgia for both new and existing properties.
USDA loans compared with other loans
USDA loans Georgia, in particular, are good mortgage programs for first-time homebuyers in Georgia who don’t possess a lot of savings in their hands! The biggest hurdle for homeownership is down payment, especially for first-time homeowners in Georgia. As we all know unlike USDA loans, a typical mortgage loan program requires a down payment.
Let’s assume that you didn’t qualify for a $0 down payment USDA loan, but even with a 3%, 5%, or 10% down payment, you might want to take a closer look at the USDA loan. Why? It’s Monthly mortgage insurance! Monthly Mortgage Insurance (AKA PMI as you may have heard before) with a USDA loan is much cheaper per month when we compare it to other traditional or FHA loans.
USDA Loans Georgia eligibility criteria
USDA loans are so good, hence they seek some standard qualities from their loan applicants. Below are the complete criteria they want you to have.
- You should be a United States citizen or you should have the Permanent Residency status in U.S to apply for USDA loans Georgia.
- USDA expect the loan seekers to have an history of solid income of minnimum 2 years. This necessarily don’t have to be with the same employer. If you have gaps inbetween different employers, you may apply with a proper documents explaining those gaps. E.g medical condtions, pregnancy, hospital admits etc. Note that, these condition does not apply to fresh college graduates.
- Generally, If your family is of 1-4 the average income limit is $95,100. If your family consists of 5 or more members this can go high as $125,550.
- In addition to that each county in Georgia has their own limits for household incomes. Your house hold income should be below these limits.
- The mortgage principal, interest, taxes and home insurance also known as PITI must be less than 30% of the loan applicant’s monthly income. If the loan applicant’s credit score in higher this limit might be slightly lifted.
- Finally, you should have a good credit score. Minnium is 580, although those who have 620 of credit score and above get a quick and streamline loan processing. For those with scores below these limits may need to fill further requirements.
Check your eligibility at the USDA official site, here and proceed to apply.
USDA Direct Program Vs 502 Gurantee Program
The USDA Loans Georgia applicants should note that the USDA Rural Development Department offers two different types of mortgage programs.
- The USDA Direct Program
- The 502 Guarantee Program
USDA directly handles the USDA direct program. And The 502 guarantee program can only be processed by approved 3rd party lenders and banks.
As we can notice that in most cases, low-income loan applicants use the USDA direct program. And the Middle-income households use the 502 Guarantee Program. It’s also important to notice that the USDA 502 program makes up the vast majority of USDA home mortgages.
Summery of USDA Loans Georgia
If you are a first-time homebuyer who is looking for a home in rural Georgia, USDA loans Georgia is one of the best options which you must look into. There’s a high chance of you getting a zero-down payment mortgage loan with a reasonable fixed interest rate from USDA.
After all, the biggest problem for homeownership is down payment. Many struggles and ended up paying rent. This is more apparent with first-time homebuyers who don’t have big savings, to start with.