USDA Rural Development Loan – Schley County, GA
Do you want to purchase a home in Schley County, Georgia? If so, you may be pleased to learn that the entire county is located in an eligible zone to qualify for the USDA rural development home loan. The United States Department of Agriculture created the rural development loan (also known as the “USDA guaranteed loan” or “USDA rural housing loan”) to help promote home ownership for lower and middle income households. While these mortgages are known for assisting low income families to buy a home in a rural area, USDA loans are actually available to moderate income households as well.
Advantages of the USDA Rural Development Program
Click Here to Get Pre-Approved for a USDA Loan
2018 USDA Home Loan Requirements
The following criteria are the primary qualification requirements:
- Income Requirements – Income is limited to 115% of the median income for Schley County. This means your household income can not be more than 15% above the median income. The calculated income limits (median income x 115%) for the USDA guaranteed loan in Schley County are: For 1-4 people you can have a combined total annual household income of up to $83,800. For a household with 5-8 people (or more) the total household income can be as high as: $110,600. The number of persons includes you, your spouse, your children, and anyone else living in your home. Want to see more information or verify your income eligibility? 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.
- Owner Occupied – No rental 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. Some other USDA lenders in Georgia will allow mobile or manufactured, but we do not offer USDA loans for these property types.
- Property Eligibility – USDA loans are intended for rural development and therefore exclusively available for homes in rural and select suburban areas. Fortunately, all of Schley County, Georgia is in an eligible zone. If you would like to, you can look up properties by address on the USDA property eligibility search. This tool also allows you to view a map with ineligible areas shaded in.
Click Here to Get Pre-Approved for a USDA Loan
USDA Loan Frequently Asked Questions:
You do not have to be a first time home buyer. You can be a previous homeowner and still qualify for a USDA loan. If you currently own a home, you must sell it though, since USDA loans are only for a primary residence, and not a second home, investment property, or vacation home.
Once you have a USDA loan from the original purchase of your home, you may be able to streamline refinance on future loans. This is the equivalent of the FHA or VA streamline programs, and is an incredible refinance product. The USDA streamline refinance provides an easy way to quickly reduce your mortgage payment. It does not require a new appraisal (the one from your original purchase is used). You do not have to submit any documentation for your job or income, and no credit check is required. It is an easy and efficient way to lower your interest rate and mortgage payment.
Yes, you absolutely can. Many individuals or spouses who apply for the direct loan are turned down due to not meeting the various requirements, such as those related to income, can still qualify for the USDA guaranteed loan. The direct loan is for the lowest income borrowers, whereas the guaranteed loan allows a little more than the median income to be eligible.
There are no exact loan limits for USDA loans, as there are for other loan types such as FHA and conforming (conventional). The amount that you personally can borrow will be determined mostly based upon your debt-to-income ratio. This is calculated based on your monthly income and monthly debts. The max DTI ratio (unless you have “compensating factors” such as savings or great credit), is 43%. So if you make $5,000 in combined income, your total debts (mortgage payment and other debts such as auto loans and credit cards), must not exceed $2,150/month (which is 43% of the $5,000 example we are using here).
The only way you are allowed to purchase a duplex is if you buy only one of the two units. You are not allowed to buy both units of a duplex (or 3 units in a triplex, or 4 units in a fourplex). You can only buy one unit of the multi-unit property, or a single family residence (detached home, or in plain words, your typical single unit house).
In spite of being backed by the United States Department of Agriculture, USDA loans are not available for agricultural properties or farms of any kind. It is common to assume they would be, but the USDA rural housing loans are only for residential properties.