USDA loans in Georgia

A USDA loan is one of the few ways to buy a home with no down payment at all. If the home is in an eligible area and your household income fits the program's limits, the USDA Single Family Housing Guaranteed Loan Program can finance the full purchase price. Here is how it works in Georgia.

By Bill Bulloch — former Georgia mortgage professional

What a USDA loan is

The USDA loan most buyers use is the Single Family Housing Guaranteed Loan Program, often called the Section 502 guaranteed loan after the section of the Housing Act of 1949 that created it. A private, USDA-approved lender makes the loan, and the U.S. Department of Agriculture guarantees it against default losses — similar in spirit to how FHA insurance works. That guarantee is what lets lenders offer zero-down financing to moderate-income buyers. The program is run by USDA Rural Development and is governed by federal regulation 7 CFR Part 3555.

There is a second, separate program with a similar name: the USDA direct loan, where USDA itself lends the money to low- and very-low-income households, sometimes with a subsidized interest rate. This guide covers the guaranteed loan, which is the one most Georgia buyers will use. If your household income is well below the area median, ask a lender or your local USDA Rural Development office whether the direct program fits better.

Who can use one: USDA income limits in Georgia

USDA loans are built for low- and moderate-income households, so there is an income ceiling other loan types do not have. Your total household income must be at or below 115% of the area median income for the county where the home is located, with a higher limit for larger households.

• Standard limit, fiscal year 2026: $122,800 for a 1–4 person household and $162,100 for a 5–8 person household in most counties. Higher-cost counties have higher limits.
• Every adult counts. USDA counts the income of every adult living in the home, even adults who are not on the loan. That catches some buyers by surprise, so add up the whole household before you shop.
• Limits change. USDA updates income limits periodically — usually once a year. Always confirm your county's current limit on USDA's eligibility site or with your lender before making an offer.

If your household income is above the limit, a USDA loan is not an option for that purchase — but the other low-down-payment programs may still fit. Our FHA vs. conventional guide and our Georgia down payment assistance guide cover the main alternatives.

Where it works: USDA-eligible areas in Georgia

The home must sit in a USDA-designated eligible rural area. The word "rural" misleads a lot of people: eligibility is drawn on a map, not by whether the property looks like a farm. About 97% of U.S. land area is USDA-eligible, including many small towns and outer suburbs. In Georgia that means plenty of homes outside the Atlanta core and around the state's smaller cities can qualify.

Eligibility turns on population and whether a place sits inside a metropolitan area. In general, communities inside a metropolitan statistical area are capped at 10,000 people and communities outside one at 20,000, with a Farm Bill provision extending eligibility to certain places up to 35,000 residents that once were rural and still lack affordable mortgage credit. USDA reviews these designations every five years.

The practical rule: do not guess — check the address. Eligibility is parcel-specific; one side of a street can qualify while the other does not, and areas can lose eligibility after population growth. Run the exact street address through USDA's official property eligibility tool at eligibility.sc.egov.usda.gov before you write an offer. A lender experienced with USDA loans in Georgia can also run the check for you.

What a USDA loan costs: guarantee fees instead of PMI

USDA loans do not require private mortgage insurance (PMI). Instead, borrowers pay a guarantee fee in two parts:

• Upfront guarantee fee: 1% of the loan amount. It is charged at closing but can be financed into the loan — so a loan can cover the appraised value plus the fee, and still require no money down.
• Annual guarantee fee: 0.35% of the outstanding loan balance per year, collected monthly as part of your mortgage payment. It declines slightly each year as the balance is paid down.

Those fees are lower than FHA's mortgage insurance (a 1.75% upfront premium and 0.55% annual premium), which is one reason a USDA loan often costs less month to month than an FHA loan for the same borrower — when the buyer qualifies for both. USDA sets the fee rates, and they can change, so confirm the current figures with your lender. The loan itself is a fixed-rate mortgage with a 30-year term in most cases.

Credit and debt requirements

USDA does not publish an official minimum credit score, but lenders apply their own requirements, and a score of 640 is the usual line for streamlined, automated approval through USDA's Guaranteed Underwriting System. Below 640, approval is still possible with manual underwriting, but expect more documentation and a closer look at your payment history.

On debt, USDA's standard repayment ratios are 29% for housing costs and 41% for total debt, with exceptions possible when compensating factors exist — for example, strong cash reserves or a history of paying similar housing costs on time. Your lender runs the full picture; the ratios are guidelines, not a hard cutoff in every case.

What kind of home qualifies

• Primary residence only. The home must be the one you live in. Investment properties and vacation homes are not eligible.
• Modest, single-family homes. New construction, existing homes, and some manufactured homes can qualify. The home must meet USDA's property condition standards — structurally sound, with working utilities and no major health or safety problems.
• No working farm. The property cannot be a working farm or an income-producing property, even if it sits on acreage.
• No maximum loan amount. USDA sets no loan limit for guaranteed loans; the amount is limited by the home's appraised value and your ability to repay. That is different from FHA and conforming loans, which have published limits.

Georgia notes

Two Georgia-specific points that apply to any mortgage here, USDA included:

• Attorney closings: Georgia is an attorney-closing state, so a licensed Georgia attorney handles the closing regardless of loan type. Budget for attorney fees in your closing costs.
• Homestead exemption: After you buy, file for Georgia's homestead exemption with your county tax assessor — it reduces the taxable value of your home. Rules and amounts vary by county.

How to check your eligibility and apply

1. Check the address on USDA's property eligibility map at eligibility.sc.egov.usda.gov.
2. Check your household income against your county's current USDA income limit on the same eligibility site — remember to count every adult in the household.
3. Find a USDA-approved lender and get preapproved. Ask specifically about USDA guaranteed loans; not every lender offers them.
4. Shop and make an offer on an eligible home, keeping the appraisal and property-condition requirements in mind.
5. Close with a Georgia attorney, as with any Georgia mortgage.

If the address or your income does not fit, do not force it — the FHA loan, a conventional loan with a low down payment, or Georgia down payment assistance may be the better path. Our first-time homebuyer guide walks through the full buying process step by step.

Frequently asked questions