How Much Can You Borrow with a USDA Loan?
If you’re planning to apply for a USDA mortgage, you may wonder “How much can you borrow with a USDA loan?” With USDA Guaranteed loans, there’s no limit on the total amount of money you can borrow to cover the cost of your property’s current market value.
However, USDA income limits, property requirements, and eligibility will factor into your USDA loan approval. Read on to learn more about these specific requirements.
What are USDA’s income limits?
Most areas in the country have a $91,800 household income limit for a dwelling with one to four people. However, there are some areas, such as those located near larger metropolitan areas like Dallas, Texas, or Monroe County, Florida, that feature ceilings over $100,000.
No matter the locality, your income can’t exceed 15% percent of the income limit of your USDA-defined rural area.
What qualifies an area as “rural?”
When you picture a rural town, you’ll likely envision a main street lined with local businesses—typical small-town USA. While the USDA defines this type of locale as “rural,” you might be surprised by how expansive property eligibility for a USDA loan is:
Not sure if your new property falls into these categories? Simply enter the property’s address in the USDA’s online eligibility map to find out.
What factors determine my eligibility?
When you apply for a USDA loan, your loan officer will evaluate the following factors to determine your ability to repay your loan:
While there are no credit requirements for a USDA loan, your OVM Financial professional may evaluate this information, as well as your debt-to-income ratio, to determine your interest rate.
So if you’re ready to apply for a USDA mortgage, talk to an OVM Financial professional to find out how much you can borrow with a USDA loan. You can read other helpful articles, such as USDA loans in Georgia or what’s the difference between USDA direct and guaranteed loans, on our blog.
By OVM Financial , How Much Can You Borrow with a USDA Loan? If you’re planning to apply for a USDA mortgage, you may wonder “How much can you borrow with a USDA loan?” With USDA Guaranteed loans, there’s no limit on the total amount of money you can borrow to cover the cost of your property’s current market value.
However, USDA income limits, property requirements, and eligibility will factor into your USDA loan approval. Read on to learn more about these specific requirements.
What are USDA’s income limits?
Most areas in the country have a $91,800 household income limit for a dwelling with one to four people. However, there are some areas, such as those located near larger metropolitan areas like Dallas, Texas, or Monroe County, Florida, that feature ceilings over $100,000.
No matter the locality, your income can’t exceed 15% percent of the income limit of your USDA-defined rural area.
What qualifies an area as “rural?”
When you picture a rural town, you’ll likely envision a main street lined with local businesses—typical small-town USA. While the USDA defines this type of locale as “rural,” you might be surprised by how expansive property eligibility for a USDA loan is:
Not sure if your new property falls into these categories? Simply enter the property’s address in the USDA’s online eligibility map to find out.
What factors determine my eligibility?
When you apply for a USDA loan, your loan officer will evaluate the following factors to determine your ability to repay your loan:
While there are no credit requirements for a USDA loan, your OVM Financial professional may evaluate this information, as well as your debt-to-income ratio, to determine your interest rate.
So if you’re ready to apply for a USDA mortgage, talk to an OVM Financial professional to find out how much you can borrow with a USDA loan. You can read other helpful articles, such as USDA loans in Georgia or what’s the difference between USDA direct and guaranteed loans, on our blog.
