USDA Loans

What is a USDA Loan?

USDA loans (officially USDA Rural Development Guaranteed Housing Loans) are mortgages backed by the U.S. Department of Agriculture. They're designed to help moderate-income buyers purchase homes in eligible rural and suburban areas.

USDA Eligible Areas in Georgia

Don't let "rural" fool you. Many suburban areas qualify, including parts of:

• North Georgia: Blue Ridge, Ellijay, Dahlonega, Helen, Blairsville
• Middle Georgia: Warner Robins outskirts, Perry, Dublin
• South Georgia: Valdosta, Tifton, Thomasville areas
• Coastal: Brunswick, St. Marys areas
• Metro Atlanta Fringes: Some areas 30+ miles from Atlanta

Important: Always verify eligibility using the official USDA map tool before assuming an area qualifies.

USDA Loan Requirements

Income Limits

Your household income cannot exceed 115% of the area median income (AMI). This includes ALL adults in the household, even if they're not on the loan.

For most Georgia counties in 2026:

• 1-4 person household: ~$103,500/year
• 5-8 person household: ~$136,600/year

Limits vary by county. Check the USDA income calculator for exact figures.

Credit & Ratios

• Credit Score: 640+ for streamlined approval (lower possible with manual underwriting)
• DTI Ratio: 41% maximum (front-end 29%)
• Property: Must be primary residence, modest for the area

USDA Fees

USDA loans have two fees (much lower than FHA):

Fee Type	Amount	Notes
Upfront Guarantee Fee	1.0%	Can be rolled into loan
Annual Fee	0.35%	Split into monthly payments

On a $250,000 loan: upfront = $2,500, annual = $73/month

USDA vs. FHA

Both are government-backed, but USDA wins on several fronts:

Feature	USDA	FHA
Down Payment	0%	3.5%
Upfront Fee	1.0%	1.75%
Annual Insurance	0.35%	0.55%
Location	Rural/Suburban only	Anywhere
Income Limit	Yes	No