The amount you can borrow with a USDA loan depends on your income, debts, and the property’s value. There are no set maximum loan limits for USDA loans, but the loan amount must not exceed your ability to repay.
What Factors Impact My USDA Loan Amount?
While USDA loans don’t have official loan limits like FHA loans or conventional loans, several factors still influence how much you can borrow. These include your gross household income, monthly debts, credit profile, and the appraised value of the home. The USDA requires that your total monthly mortgage payment (including taxes and insurance) stays within a specific debt-to-income (DTI) ratio—usually around 41%.
Don’t Forget About USDA Income Limits
USDA loans are designed to help moderate-income families, which means your eligibility—and loan amount—will depend in part on where you live. Each area has specific income limits based on household size and median income. If your household income exceeds the local limit, you may not qualify for a USDA loan, regardless of the property price.
Getting Prequalified Is the Best First Step
If you’re wondering how much you can borrow, the best next move is to get prequalified by a USDA-approved lender. Prequalification gives you a clearer idea of your loan potential based on your income, credit, and debts—so you can shop for homes with confidence and stay within your budget.
Have More Questions? Contact PDCU to Learn More
If you are considering a USDA loan, contact our loan specialist to learn more. We also have a variety of other mortgage products that might meet your needs. When you have questions, People Driven Credit Union has answers.
