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What are USDA Loan Limits?

March 3rd, 2022 by usdaadmin

USDA Loan Limits in Texas, Florida, Alabama and TennesseeWhat are USDA Loan Limits?

Mortgage loan limits have been on the rise lately, but loan limits are not the same across each program. While VA home loans, FHA, and Conventional loan programs each have their own limits, there are different qualifying parameters when it comes to USDA loan limits.

A mortgage loan limit is the maximum amount a home buyer can borrow under a specific mortgage program. A loan limit applies to the loan amount and not the sale price.

In today’s short video we will break down the details so you can separate USDA loan limit fact from friction.

To help you stay organized, we’ve created a FREE Loan Comparison Chart for you to download. It compares each loan programs side-by-side and is contained in one simple chart. Download it now!

What are USDA Loan Limits?

USDA Loans Have NO Loan Limits

It is true that there are NO USDA loan limits with the USDA Guaranteed Loan Program.  Yes! You read that right. Since there is no maximum sales price for a USDA loan, this means there is also NO maximum mortgage loan limit!

An assumption that many Realtors and homebuyer have regarding USDA loans is that they are only available for small loan sizes, which is simply not true. Since USDA loans do not have loan limits, they make a great alternative to conventional and FHA loans, which can both have larger monthly payments due to higher mortgage insurance costs.

USDA vs. FHA – How is FHA Mortgage Insurance Calculated?

While a USDA loan does not technically have mortgage insurance, it still has what is called an annual fee that is calculated at .35% of the loan amount. Further, although this fee is for the life of the loan term, because the USDA Monthly Premium is over 2X lower than the FHA Mortgage Insurance Premium (“MIP”) this results in significantly lower borrowing costs.

Additionally, a USDA home loan has a one-time financed Guarantee Fee of 1%, which is also lower than the 1.75% FHA Upfront Mortgage Insurance Premium (UFMIP).

Additionally, it requires a monthly mortgage insurance premium (MIP) of .85% of your loan amount which last for the entire mortgage term when using less than 10% for down payment.

Example Scenario:

USDA and FHA Loan Comparison

USDA Income Limits

USDA loans also have healthy income limits which was recently updated in May of 2021. USDA income limits are based on family household sizes and the county where the property is location. Thus, while USDA does not have a loan limit, the maximum loan size will be based on the buyer’s ability to repay the loan along with the applicable USDA income limits.


The USDA Loan Program Offers High Flexibility Due to the Following:

  • 100% financing;
  • Ability to finance closing costs;
  • More flexible credit guidelines than conventional loans;
  • NO loan limits.


As a USDA Approved Lender in Florida, Tennessee, Alabama, and Texas, let our experience and expertise go to work for you!


Just call or email to discuss your scenario and let us show you the “Metroplex” difference!

Toll Free: (800) 806-9836 X 280

Call/Text: (863) 451-3032

Don’t forget to download our USDA Blueprint for Success with the link below:


FREE USDA home loan Guide

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