FamilyThe USDA home loan program is one of the most successful mortgage programs in the country offering affordable, low fixed rate mortgages to moderate to low income families who need them the most. While in the past, USDA loans were mostly considered farmer’s loans, almost any area outside of a major metropolitan area now qualifies for a USDA loan. USDA home loans also offer qualified borrowers a chance to obtain a home loan with absolutely no money down, low closing costs, and comes with easier qualifications and financing options than most conventional loans.

USDA Maximum Loan Amounts

While there is no set maximum loan amount dictated by the USDA rural home loan program, the maximum amount you can borrow will be determined by your debt-to-income ratio. Your debt-to-income ratio will dictate how large of a mortgage you can afford and is usually set at a 29/41% for the maximum DTI, but often allows up to 47% with a GUS automated approval and a FICO score over 620. Additionally, your overall household income must be within USDA maximum income limits, which is based on the overall median income for that area.

Eligibility Factors

To be eligible for a USDA loan you must meet all the preset USDA loan eligibility requirements. To meet these requirements your total household income cannot exceed 115% of the average median income for that area. Secondly, your credit background must show a fair level of credit competency, and will usually require a minimum FICO score of 620 to be considered. However, many lenders will go as low as 580 if you have steady income and are mostly debt free.

And the last major requirement for a USDA home loan is that your property must be located within a USDA designated rural area. USDA designated rural areas basically include any area outside of a major metropolitan city with less than 25,000 residents. If your interested in more information on USDA loan limits and USDA loan eligibility please contact your local USDA lender or visit the USDA website.