A USDA loan in general is a home loan that is backed by the U.S. Department of Agriculture. It falls under their Single Family Housing Program. There are two types of USDA loans and they are the USDA Guaranteed Loan and the USDA Direct Loan. The both offer similar product features to home buyers but the big difference is the guaranteed loan is offered by private lenders and backed the government and the direct loan is actual done by a local Georgia USDA office.
Actually, USDA does not have a maximum loan amount. If a borrower can meet the debt-to-income requirements and the household income requirements for a given property they can use the USDA loan to purchaser it. This is a common question because the FHA loan does have a maximum loan amount and people often get them confused.
No, you do not need to be a first-time homebuyer to obtain a USDA mortgage. It is very common to see move up buyers utilize the USDA loan product. The key for move up buyers is that the USDA loan product does not typically allow a homebuyer to have move than one home. Buyers must sell their current home before purchasing a new home using the USDA loan program.
Homebuyers are required to have a 2-year employment history to obtain a USDA home loan. This does not mean that the buyer has to have been on the same job for two years. They could have had multiple jobs over the last 2 years as long as the 2-year work history is in place.
Homebuyers who want to obtain a Georgia USDA loan can buy a townhome with this loan product. Beyond the townhome homebuyers can also use the product to buy a single family residence.
Yes, the USDA home loan can be used to buy a bank owned or foreclosed property.
There are many benefits to Georgia homebuyers who want to utilize the USDA home loan. The most glaring is that the Georgia USDA home loan is a true 100% no money down loan. It is the only loan type available for non-veterans that offers this feature. Beyond the no money down there are several other great things about this home loan product. The seller can pay up to 6% of the sales price towards the buyers closing costs. Also, the USDA home loan is very flexible when it comes to credit.
Yes, the USDA home loan Georgia does allow home buyers to have previous bankruptcies. Homebuyers are required to be 3 years removed from the discharge date of a chapter 7 bankruptcy. If the bankruptcy was a chapter 13 the Georgia homebuyer must be 3 years removed from the file date of the bankruptcy.
The USDA home loan has its version of mortgage insurance and it's called a guarantee fee. There is an up-front guarantee of 1% which is added to the loan. There is also a yearly fee that is paid monthly. The math is simple on both of these. If the loan amount is $110,000 then with the 1% upfront fee that becomes a new total loan amount of $111,000. The yearly fee is .35% and it's added to the payment monthly. The yearly fee on the same loan form above would be $32 per month.
The simplest and fastest way to determine if a home qualifies for a Georgia USDA home loan is to use the USDA legibility map. The map is easy to use and can be found on the USDA website. Homebuyers can search a specific address or they can do a broader search for certain areas.
Yes, homebuyers can put money down when using the USDA mortgage as their financing. This can help lower the monthly payments. There is a USDA guideline that says if a borrower has enough to put at least 20% down they may not be eligible to obtain a USDA mortgage. The logic behind this is that the loan product is designed for low to moderate-income families with a lower amount of assets.
There’s not necessarily a maximum amount of acreage that the USDA home loan sets a limit on. The challenge that could come into play is if the total land value exceeds 30% of the total transaction amount. Another issue to pay attention to when there is excess acreage is finding comparable sales for the appraisal.
The USDA home loan has a unique qualification requirement that is called household income or household income limits. By definition, the USDA loan Is designed for low to moderate-income households. The household income limit will vary from county to county but it is based on 115% of the median household income in the area. For example, if the median household income in a given area is $62,000 then 115% of that is $71,300. The most important thing for Georgia homebuyers to understand about this guideline is this is for all incoming earning adults in the home regardless if they are actually on the loan or not. If a homebuyer is close to going over the income limit USDA does offer a credit of $480 per child that is in the home. For example, if there are 3 children in a home then the household income can be reduced by $1,440.
Yes, the USDA home loan does offer a refinance feature. The key to the refinance is that the current loan must be a USDA home loan. If the homeowner's current loan is anything other than a USDA loan a USDA refinance cannot be done.
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Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice.