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We love being an active part of making home ownership a reality for individuals in suburban and rural areas. We know that as prices go up in heavily urbanized communities, home buyers look outward toward suburban and rural communities to expand their horizon. For those families looking for affordable housing outside the city, home ownership can be rewarding and yet intimidating. We have the field knowledge and market expertise to offer the right loan program if other loans do not seem to fit. We are proud to connect prospective home owners with USDA loans that allow them to own a home affordably in rural areas.

USDA Loans are mortgages offered to rural home buyers. These loans are made possible via the United States Department of Agriculture (USDA) Rural Development Guaranteed Housing Loan Program. USDA Loans are made available to those with low-to-moderate income in rural communities, and feature below-market mortgage values and reduced mortgage insurance premiums.

A USDA Rural Development Guaranteed Housing Loan is also called a USDA Mortgage or Rural Housing Loan for short. It is also sometimes called a “Section 502” loan, because the program is made possible by section 502(h) of the Housing Act of 1949.

There is no loan limit or maximum. Rather, the parameters solely rest on debt-to-income ratios. From this calculation, it can be determined how much mortgage value can be lent and approved by the United States Department of Agriculture. USDA Loans are not bound to one-time use. The same individual eligible for a USDA mortgage now, may very well be eligible again for a separate mortgage. USDA loans do, however, require mortgage insurance even though it can be at a competitive rate. This is due to the fact that like the Federal Housing Administration, the USDA’s Rural Housing Loan Program is partially self-funded through mortgage insurance premiums.

There are no down payments for a USDA mortgage and all USDA interest is fixed. They offer no Adjustable Rate Mortgages (ARMs). A USDA Rural Housing Loan is either a 15 year fixed-rate mortgage or a 30 year fixed-rate mortgage.

Fortunately, over 90% of America is geographically eligible for USDA loans. Hence, their definition of rural is fairly liberal. Though they used to be called “farm loans,” that is hardly an adequate term any longer for what USDA loans now geographically encompass.

Here are a few qualifying elements taken into consideration when lenders approve a loan:


  • Firstly, to find if your desired property is eligible, check on

  • Income limits vary from county district to county district and place to place. Also, another factor within this is debt-to-income ratio.

  • Credit Score is also a factor. Lenders tend to accept credit scores that run 620 or higher. However, this is subject to change and a lower score does not necessarily exclude someone entirely from the loan.


Another important thing to note is the kinds of USDA loans offered. Here are a few:

USDA Guaranteed Loans: These are the most popular kind of USDA loans, and they allow for higher income limits. They offer 100% financing for primary home purchases. All USDA Guaranteed loans are set at a 30-year term and are set at a fixed rate for the life of the loan.

USDA Direct Loans: These are rarer than USDA Guaranteed Loans and tailored more towards very low income households.

Phoenix Mortgage Specialists, Inc. is proud to serve all our clients across Georgia with premier USDA mortgage services specially tailored to their respective preferences and needs. It is our greatest pleasure to be a consistent source of professional guidance and expertise for every prospective homeowner and every individual preparing to walk through this milestone in his or her life. For inquiries beyond what is covered below on this page, feel free to contact us. We would love to be of service to you in any way possible, and we would love to help answer any of your USDA loan-related questions or concerns. 

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