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What are the 2024 USDA Loan Limits in Florida, Texas, Tennessee, and Alabama?

December 8th, 2023 by Sean Stephens

USDA Loan Limits in Texas, Florida, Alabama and Tennessee

Are there USDA Loan Limits? Is there a USDA Max Loan Amount in Florida, Texas, Tennessee, or Alabama?

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 maximum loan amounts, there are different qualifying parameters when it comes to USDA loan limits in Florida, Texas, Tennessee, and Alabama.

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 borrowed 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 here!

What are USDA Loan Limits?

Are there USDA 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!

Many assume that USDA loans are only available for smaller loan amounts, but this 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 and lasts  for the life of the loan term

On the other hand, FHA loans carry a monthly Mortgage Insurance Premium (“MIP”) of .55% of your loan amount. This lasts for the entire mortgage term when there is less than 10% down payment.

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).

As a result, because because the USDA Monthly Premium and one time finance charges are both significantly lower than FHA loans, this results in USDA loans having substantially lower borrowing costs.

Here is an example scenario for you to review:

What are the 2024 USDA Loan Limits in Florida, Texas, Tennessee, and Alabama?

USDA Income Limits

USDA loans also have healthy income limits which were also recently updated. USDA income limits are based on family household sizes and the county where the property is located. Therefore, 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) 593-2001
SeanS@MPLX.org

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

 

FREE USDA home loan Guide

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