Purchasing a home in Atlanta, Georgia, is a major investment. Homes are expensive, even on the outskirts of the city. However, eligible buyers can secure USDA loans when purchasing certain properties in the area to make home financing possible.
A Georgia USDA loan can be acquired through approved lenders in the Atlanta area. The federal government backs these mortgage loans through the United States Department of Agriculture. Since the government insures USDA rural housing loans, lenders can offer these loans to qualified buyers to make homeownership more accessible.
TrueWay Mortgage is a local lender that provides financing solutions for buyers in the Atlanta area. Our expertise includes offering USDA loan programs and guiding Georgia buyers through the mortgage process with a personalized experience.
USDA loan programs help borrowers interested in purchasing homes in rural and suburban areas. Numerous zones around Atlanta are eligible for Georgia USDA loans. If you want an alternative to conventional loans, this program can offer zero down payments and more competitive interest rates than traditional financing.
Eligibility is often determined by household income, making homeownership an option for those with a limited income. Homeowners will have to pay closing costs, and meet payment requirements. However, the requirements for a credit score are often more flexible. Prepayment penalties are prohibited for USDA loans.
The benefits of a Georgia USDA loan, combined with TrueWay Mortgage’s experience in the local housing market, can make your home-buying journey much smoother.
Conventional home loans are the most popular mortgage product in most markets. However, the affordability of these loans is often out of reach for many low income buyers. Rather than abandoning your dream of homeownership, you can apply for a Georgia USDA loan even if you may not qualify for traditional financing. Let’s discuss the primary benefits of this program and how it can make homeownership around Atlanta more affordable.
If you apply for traditional financing, the minimum down payment is usually 3% of the value of the home. Even with this minimum amount, you may have to balance it with a higher interest rate or expensive private mortgage insurance premiums.
There are no USDA loan requirements for a minimum down payment. This means you can pay $0 upfront for the cost of the home, though this does not include closing costs. Three percent of a $100,000 is still $3,000, so you can avoid these hefty costs with a Georgia USDA loan. The zero down payment benefit opens the door to homeownership for a broader range of buyers in the Atlanta area.
TrueWay Mortgage is committed to providing affordability for borrowers in this market through the USDA loan program. We will help you find a solution that suits your financial goals and upfront costs.
When you borrow money from a lender, they charge you an interest rate. The higher the rate, the more you will pay the mortgage lender over time. If you have trouble affording a large down payment, the lender will balance that risk by charging a higher interest rate.
This significantly increases your monthly payments and total loan amount. Accessing these lower interest rates may be challenging if you don’t have a strong credit score and a large down payment.
With a Georgia USDA loan, you can still obtain competitive interest rates on a mortgage. The government’s backing reduces the risk to the USDA-approved lender so that they can relax some of their qualification standards. For example, some lenders may provide financing based on your job history if you have a low credit score.
It also allows the lender to offer better USDA interest rates to borrowers. Although you can avoid a large down payment, you won’t be punished with high interest rates for a USDA loan. Some homeowners can use refinance opportunities to achieve a lower interest rate or mortgage insurance payment.
As you search for a home and mortgage in Atlanta, TrueWay Mortgage can offer competitive rates through the USDA program. With lower monthly costs and a smaller loan total, you can save money in the long run using a USDA home loan to purchase a home in elegible major cities or rural areas.
USDA home loans are viable alternatives for buyers seeking properties in rural or suburban areas. Even with looser eligibility standards, you must still meet some qualifications to secure a USDA home loan. For example, rural areas surrounding Atlants are more likely to be eligible.
The TrueWay Mortgage team wants to help home buyers understand Georgia USDA eligibility and work to meet the requirements so you can qualify for financing.
Georgia USDA loans are not available to all borrowers. Limits surrounding household income and credit scores will determine whether you qualify for a USDA loan. There is a maximum income limit of $112,450 in many areas for a family of four or less. You may not qualify for a Georgia USDA loan if you make more than this. This specific criteria may shift from region to region.
The income limit is based on the household size. Larger households interested in rural housing have a larger income limit. This income limit often changes yearly to accomodate with the changing poverty level.
You must earn enough to pay for the mortgage and upfront costs and maintain a favorable debt-to-income ratio. Most Georgia lenders require a maximum DTI ratio of 41%, calculated by dividing your total monthly debt by monthly income and multiplying it by 100 for a percentage. Manual underwriting can allow a more flexible DTI ratio, but lenders require other factors, such as a higher income, to compensate for it.
While the US Department of Agriculture does not set a minimum credit score for these loans, individual lenders do. Generally, lenders want to see a minimum credit score of 620. Any lower, you may be deemed too risky to lend money to. However, exceptions could be made depending on your other finances, and TrueWay Mortgage will work with you to help you meet these USDA loan requirements.
One of the primary metrics for qualifying for a USDA loan is the location of the property home buyers want to buy. This loan program is geared toward suburban and rural development, so you cannot purchase a home in most areas of Atlanta. However, plenty of suburban and rural areas just outside the city have qualified properties.
You can look up the property's address to see if it is in a USDA-eligible area. Simply plug the address into the address bar of the eligibility map. If the location qualifies for the program, you have passed the first obstacle to USDA financing. The property must also serve as your primary residence.
There is often confusion about what rural areas are eligible for USDA loans. TrueWay Mortgage will help you identify eligible properties around Atlanta, Georgia to secure a USDA loan based on the home’s location.
TrueWay Mortgage is a trustworthy mortgage lender that has worked with many Atlanta residents to find financing solutions. Our Georgia team is fully dedicated to each borrower, walking them through a personalized experience to assess their finances and find a mortgage product that works.
We aim to simplify the process of meeting USDA loan requirements and applying for a mortgage. If you have questions about your qualifications or the upfront costs of a loan, we are happy to answer them. As one of the major Georgia cities, Atlanta can be a stressful market to navigate. You can rely on our expertise and honest communication to understand the USDA program.
Applying for a USDA loan in Atlanta may raise many questions. You need a trustworthy lender with experience in this market to guide you. Instead of cramming you into a cookie-cutter process, we work hard to understand your individual needs as a Georgia buyer and meet them with our services.
The benefits of a USDA loan are numerous, including low down payments, loose credit score standards, and low interest rates. If you want to take advantage of these features, TrueWay Mortgage will walk you through achieving your dream of homeownership.
Call us today at 404-962-0032 for a USDA loan consultation so we can answer any questions you have. Our experienced professionals will work with you to help you learn about the Georgia housing market by applying for a USDA loan, discover what a debt to income ratio is, and more. You can also fill out our online form here.