USDA Loans in Alpharetta, GA

What is a USDA Loan?

Officially known as the Section 502 Single Family Housing Guaranteed Loan Program, the USDA loan is a zero down payment mortgage option available to homebuyers in the United States who wish to purchase in a qualified rural or suburban area. USDA loans are issued by private lenders and guaranteed by the U.S. Department of Agriculture (USDA).

Purpose of the USDA Loan

The USDA loan’s purpose is to provide affordable homeownership opportunities to low-to-moderate income households to stimulate economic growth in rural and suburban communities throughout the United States.

These rural development loans are available in approximately 97% of the nation’s land mass, which includes over 100 million people*.

USDA Loan Process

Going through the USDA loan process can be different for each homebuyer; however, the typical flow is as follows:

  • Prequalify with Mortgage Brothers
  • Provide all necessary documents and reach preapproval
  • Find a USDA-approved home in an eligible “rural” area
  • Sign a purchase agreement and order a USDA appraisal
  • Be patient during loan processing and underwriting, then close on your home!

USDA Loan Income Limits

Because USDA loans are meant to assist low-to-moderate income homebuyers, the USDA sets income limits based on the property’s location and household size. The base USDA income limits are:

1-4 member household: $82,700

5-8 member household: $109,150

USDA counts the total annual income of every adult member in a household towards the USDA income limit, regardless if they are a part of the loan.

But it’s also not as simple as looking at your annual pay. USDA ultimately looks at what it calls adjusted annual income, which takes into account acceptable deductions for things like child care, medical expenses and more.

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USDA Loan Eligibility

To qualify for a USDA loan, borrowers must meet credit and income criteria set forth by the Mortgage Brothers and the USDA.

At a minimum, the USDA requires:

  • U.S. citizenship or permanent residency
  • Dependable income, typically two consecutive years
  • The ability and willingness to repay the mortgage – generally no late payments or collections 12 months prior to the application
  • An acceptable debt ratio, which can vary by lender and other factors
  • The homebuyer’s adjusted annual income cannot exceed 115% of the area median income, depending on family size
  • The property be located in a qualified rural area

While the USDA does not set a minimum credit score requirement, Mortgage Brothers requires at least a 640 score in order to use the USDA’s Guaranteed Underwriting System (GUS). Those with credit scores below 640 may still qualify for a USDA loan, however, the file will require manual underwriting.

Benefits of a USDA Loan


USDA makes homeownership possible for many first-time homebuyers who otherwise could not afford a traditional 5-20% down payment.  Mortgage Brothers offers USDA purchase products with no money down. Eligible homebuyers qualify for advantageous rates and terms.

Benefits of USDA loans include:

  • $0 down payment
  • Competitive interest rates
  • Low monthly mortgage insurance
  • Flexible credit requirements

Ready to Get Started?

Contact us today to learn more about USDA loans.