The USDA Rural Development 502 Guarantee Loan is a federally funded program allowing approved lenders and banks the ability to offer 100% financing to eligible home buyers in Georgia. In fact, all 50 states have eligible locations for USDA financing. Buyers who qualify can use this mortgage to buy a home with little to no cash out of pocket. Georgia USDA Rural Development loans offer many great benefits to home buyers, listed below are a few:
- 100% financing.
- No savings or assets required.
- USDA closing costs can be paid by the home seller, or included into the buyer’s loan.
- Interest rates are often lower when compared to conventional loans.
- Safe 30 year fixed terms.
- Mortgage insurance is cheaper than FHA MIP. Even if you are already approved for an FHA loan, be sure to check into USDA as a cheaper alternative.
- Not limited to only first time home buyers.
- No purchase loan limits.
Before applying for a USDA loan, borrowers will want to know about the loan eligibility requirements below:
- Credit – Minimum credit score of 620. Occasional exceptions are made, but this is the standard credit requirement.
- Income – Income is limited to 115% of the median income in the applicable county. This means your household income can not be more than 15% above the median income for your county. The income limits for USDA loans depends on your county and how many people live in your household. The number of persons includes you, your spouse, your children, and anyone else living in your home. The USDA has a very useful income eligibility tool which allows you to calculate your eligible income, make certain deductions, and then see if your income qualifies. Be sure to select 502 Guaranteed loan program.
- Property Eligibility – USDA loans are intended for rural development and therefore exclusively available for homes in rural defined locations, or select suburban areas. You can look up USDA approved homes by the address on the USDA property eligibility search. This tool also allows you to view a map with ineligible areas shaded in. Contact us below if you need assistance, we are always happy to help. There are many approved locations just outside of Savannah, Macon, Augusta, Valdosta and Columbus.
- Owner Occupied – No rental or vacation properties are allowed. You must occupy the home you want to buy with a USDA loan. Another requirement is that the home be either a single-family residence or a condo. No mobile or manufactured homes permitted.
Home buyers can learn more about the USDA loan approval process in the short video below:
USDA Mortgage Hub serves buyers across the nation, including Georgia: Atlanta, Macon, Valdosta, Lake Park, Tifton, Sylvester, Adel, Moultrie, Albany, Augusta, Hahira, Columbus, Savannah
If you have questions please submit the Quick Contact Form on the right side of this page for quick service. Mobile phone users can find the green form icon at the top of their page. You can also call us 7 days a week at ph: 800-743-7556
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