We receive many questions about the USDA maximum loan amount limit for 2022. Generally, all loan programs have loan amount limits – FHA mortgages, VA loans, Conventional Fannie Mae, Freddie Mac. In all states, the loan amount limits depend on the county and can range from the $300’s for FHA to over $600,000 for Conforming loans.
USDA 502 Guarantee loans however do NOT have set limits on how much the home buyer can borrow. Instead, home buyers are qualified based on their debt. Generally speaking, USDA (Rural Development) guidelines require that borrowers’ debt related to housing (mortgage payment, taxes, insurance) not exceed 30% of their gross monthly income.
For example: let’s say you make an income of $3,000 per month – 30% of this would be $900.00. $900.00 per month would be your max monthly expense allowed for housing per USDA requirements. $900 would equal roughly a home purchase price of $125,000 – $130,000 (depending on the exact amount for property taxes, home insurance, mortgage insurance, etc) You can find a handy USDA mortgage calculator here at the bottom right side of the page.
In addition to this, the USDA RD program has household income limits in place for each county. See the latest 2022 income limits here. With these family income limits, and housing debt ratio limits, borrowers will generally “cap out” at loan amount under $400,000. Also, keep in mind the housing debt limit mentioned above at 30% is not “set in stone” Some home buyers with strong compensating loan factors like high credit scores, good savings, or great job history may be able to slightly exceed this limit.
USDA Mortgage Source is Nations leading USDA Rural Development loan resource. Questions? just submit the short Info Request Form found on this page – 7 days a week. You can also contact us at Ph: 800-743-7556