Is there a USDA maximum loan amount?
Do USDA loans have a maximum sales price?
Being able to make the most of a homebuyer’s qualifying ability is critical in today’s market, and in this short video I will explain the facts that you need to know in order to keep your financing headed in the right direction.
Also, if you have not yet done so, feel free to download our newest “USDA Blueprint” with the link below. This free guide is designed to help walk you through the USDA process step-by-step and is a great educational resource for both homebuyers and their agents.
Today’s video is great for any Realtor or homebuyer looking to expand their home search and open up a wider range of properties to consider.
USDA Loans have NO Loan Limits!
Yes, that is correct! Unlike FHA and Conventional loans which have published loan size limits, there is no maximum loan amount under the USDA Single Family Housing Guaranteed Loan Program.
Many in the Real Estate community automatically assume that USDA loans are only available for smaller loan sizes, but that is simply not true.
Due to the fact that USDA loans do not have loan limits, it can be a great alternative to both Conventional and FHA programs, which both can have potentially larger monthly payments due to higher mortgage insurance costs.
While USDA loans do not have loan size restrictions, they do have healthy income limits based on family household sizes, which were recently increased for the majority of counties. USDA qualifying will be based on the buyer’s ability to repay the loan.
USDA loans can help open up additional property types such as homes located in subdivisions, gated communities, and townhomes, provided they are in a USDA eligible area.
In summary, the USDA loans program offers high flexibility due to the following:
- 100% financing
- Ability to finance closing costs
- More flexible credit guidelines than conventional loans
- And as discussed today – NO Loan Limits!
While many lenders may offer the USDA program, it is important to find out who has the
necessary experience to navigate the USDA loan approval process successfully.
800-806-9836 Ext. 280
Just call or email if you have any USDA qualifying questions, want to discuss a new scenario, or would just like to take advantage of our free 2nd opinion service which is great for those existing transactions
I want everyone to make it a great day, and look forward to seeing you right here for the next tip of the week!