The USDA home loan program is one of the most successful mortgage programs in the country offering affordable, low fixed rate mortgages to moderate to low income families who need them the most. While in the past, USDA loans were mostly considered farmer’s loans, almost any area outside of a major metropolitan area now qualifies for a USDA loan. USDA home loans also offer qualified borrowers a chance to obtain a home loan with absolutely no money down, low closing costs, and comes with easier qualifications and financing options than most conventional loans.

USDA-Mortgage Limits for 2018:

USDA Rural Housing loans do not have set loan limits. Instead, borrowers qualify based on their debt to income ratios. The general guideline is borrowers housing expense (mortgage payment, taxes, and home insurance) should not exceed 30% of their gross income. Since USDA loans DO have household income limits, this will generally limit the size of the permitted loan amount to below conforming limits. Read more about the USDA loan limits. 


Factors for Eligibility

To be eligible for a USDA loan you must meet all the preset USDA loan eligibility requirements. To meet these requirements your total household income cannot exceed 115% of the average median income for that area. Secondly, your credit background must show a fair level of credit competency, and will usually require a minimum FICO score of 620 to be considered. However, many lenders will go as low as 580 if you have steady income and are mostly debt free.

And the last major requirement for a USDA home loan is that your property must be located within a USDA designated rural area. USDA designated rural areas basically include any area outside of a major metropolitan city with less than 25,000 residents. If your interested in more information on USDA loan limits and USDA loan eligibility please contact your local USDA lender or visit the USDA website.

There is no set maximum amount for a USDA Rural Development Loan. However, the total amount a person can borrow depends on a number of factors, including:

  • Debt to Income Ratio
  • Monthly Income
  • Value of Home

In most cases, the maximum amount available for USDA Loans will be equal to 100% of the appraised value of the home. 

Because the eligibility requirements for a USDA Loan depend on a number of specific factors, including the county where the home is located, your current income and your credit history, it is important to work with a certified USDA Loan agent who understands your needs.  For the answers to your questions, contact the USDA Loan Agency today.

All the new loan limits for 2018 are listed below by loan type. Borrowers that have questions can reach out to us by calling the number above, or just submitting the short info request form on this page.


USDA-Maximum Loan Limits

While there is no set maximum loan amount dictated by the USDA rural home loan program, the maximum amount you can borrow will be determined by your debt-to-income ratio. Your debt-to-income ratio will dictate how large of a mortgage you can afford and is usually set at a 29/41% for the maximum DTI, but often allows up to 47% with a GUS automated approval and a FICO score over 620. Additionally, your overall household income must be within USDA maximum income limits, which is based on the overall median income for that area.


FHA Mortgage Amounts for 2018:

FHA’s mortgage limits are set at 65% of the national “conforming” loan cap, which recently increased from $424,100 to $453,100 this year.

This increases the FHA limit  from$275,665 to $294,515 in most counties nationwide. The FHA high-cost limits 150% of the conventional loan limit, which is now to $679,650. High-cost locations like South Fla, CA, CO, VA, NY, etc are those where 115% of the median home price is greater than the floor ($294,515) but less than the ceiling ($679,650). In these areas, the limit equals 115% of the median home price.

VA Mortgage Limits for 2018:

VA loan limits follow the same as conforming limits listed above. VA loan amounts that exceed the standard conventional caps are considered VA Jumbo loans and will require a small down payment.

Reminders for those using the FHA mortgage:

  • The new loan limits will apply to all loans assigned FHA case numbers on or after 1/1/2018
  • The FHA loan limits for 2018 apply to both FHA purchase and streamline /cash-out refinance transactions.
  • All of the base FHA mortgage limits apply to standard 1 unit properties, 2-4 unit properties will be higher.

2018 Conforming Mortgage Limits:

The latest Conforming/Conventional mortgage limits have been raised to $453,100 for most counties across the nation.  Like FHA, higher cost states will see greater limits up to $679,650. Loans above this amount will be considered a jumco loan. 



What is the Maximum Loan Amount For a USDA Loan? is available in the following areas/cities

Browse for additional mortgage experience in other cities with products and services provided by übermortgage.