USDA Loans

USDA Home Loans

USDA loans offer 100% financing for eligible rural and suburban homebuyers. Backed by the U.S. Department of Agriculture, designed to help low-to-moderate income families achieve homeownership.

What is a USDA Loan

100% Financing for Rural & Suburban Homes

A USDA home loan is a mortgage backed by the U.S. Department of Agriculture, designed to help low-to-moderate income families purchase homes in eligible rural and suburban areas. Also known as the USDA Rural Development Guaranteed Housing Loan Program.

Like VA loans, USDA loans offer 0% down payment, making them one of the few no-down-payment mortgage options available. They also feature low mortgage insurance rates and competitive interest rates.

USDA loans are available in all 50 states. The program supports homeownership in areas with populations under 35,000, helping families achieve the dream of homeownership outside crowded urban centers.

USDA Rural Development Program

0% down payment. Low mortgage insurance. Competitive rates.

” USDA loans make homeownership possible for families who may not qualify for conventional financing.

Why USDA

Benefits of a USDA Loan

USDA loans offer unique advantages for homebuyers looking to purchase in eligible rural and suburban areas.

0% Down Payment

100% financing is available for eligible homebuyers, no down payment required for qualified buyers.

Low Mortgage Insurance

USDA loans have lower mortgage insurance rates compared to FHA loans, saving you money each month.

Competitive Interest Rates

Down payment assistance programs can be added to an FHA Loan for additional down payment and closing cost savings.

Flexible Property Types

Eligible property types include single-family homes, townhouses, and some condos in designated rural areas.

Flexible Credit Requirements

USDA loans have more lenient credit requirements than conventional loans, making homeownership more accessible.

Support Rural Communities

USDA loans support homeownership in rural and suburban areas, helping communities grow and thrive.

Eligibility

Eligible Property Location

USDA loans have three main eligibility requirements, property location, income limits, and citizenship.

Eligible Property Location

Properties must be located in USDA-designated rural or suburban areas, typically areas with populations under 35,000. Use the USDA eligibility map to check your address.

✓ Rural / Suburban areas

Income Limits

Your household income must be below 115% of the median income for your area. Both applicant and co-applicant incomes count toward the limit.

✓ Income below 115% of median

Citizenship & Occupancy

Borrowers must be U.S. citizens or permanent residents. The home must be your primary residence, USDA loans cannot be used for investment properties.

✓ Primary residence only

Additional Requirements: You must demonstrate the ability to repay the loan, have a credit score of 640 or higher (with some exceptions), and the home must meet USDA property standards.

Property Eligibility

Eligible Property Types

USDA loans can be used for a variety of property types, as long as they are in eligible rural or suburban areas.

Single-Family Homes

Detached homes are the most common USDA purchase. Must be in eligible rural or suburban areas.

Townhouses & Condos

Some townhouses and condos are eligible, provided they are in USDA-approved projects.

Manufactured Homes

New manufactured homes may be eligible if permanently affixed to a foundation and meet USDA standards.

Multi-Unit Properties

Duplexes, triplexes, and fourplexes are generally not eligible for USDA financing.

Investment Properties

USDA loans require owner-occupancy. Investment properties and second homes are not eligible.

New Construction

New construction is eligible if the builder is registered with USDA and the property meets all requirements.

Use the USDA eligibility map to check if a specific property is in an eligible area.

Income Limits

Understanding USDA Income Limits

USDA loans have income limits designed to serve low-to-moderate income families.

Income limits are based on the median income in your area. Your total household income must be below 115% of the area median income to qualify for a USDA loan.

Income includes earnings from all adult household members, not just the borrower. The limits vary by county and family size.

Example: In a county where the median income is $70,000, the USDA income limit would be $70,000 × 1.15 = $80,500 for a household of up to 4 people.

How to Apply

Getting Your USDA Loan Step by Step

The USDA loan process is similar to other mortgage programs. Here are the steps to get started.

Check Property Eligibility

Use the USDA eligibility map to confirm the property is in an eligible rural or suburban area.

Check Income Limits

Verify your household income is below 115% of the area median income for your county.

Complete Application

Apply with a USDA-approved lender. Provide financial documentation, income, assets, credit.

Close & Move In

Once approved, close on your loan and move into your new home with 0% down!

Got Questions?

USDA Loan FAQs

Common questions about USDA loans, eligibility, and the application process.

What is a USDA loan?

A USDA loan is a mortgage backed by the U.S. Department of Agriculture, designed to help low-to-moderate income families purchase homes in eligible rural and suburban areas. It offers 0% down payment, low mortgage insurance, and competitive interest rates.

Do I need a down payment for a USDA loan?

No. USDA loans offer 100% financing, zero down payment is required for eligible buyers. This makes USDA loans one of the few no-down-payment mortgage programs available.

What are the income limits for a USDA loan?

Your household income must be below 115% of the median income for your area. Income limits vary by county and family size. All adult household members’ incomes are counted toward the limit.

Where can I use a USDA loan?

USDA loans are available in designated rural and suburban areas across all 50 states. Use the USDA eligibility map to check if a specific address is in an eligible area.

What credit score do I need for a USDA loan?

Most lenders require a credit score of 640 or higher. However, manual underwriting may be available for borrowers with lower scores who have strong compensating factors.

What property types are eligible for USDA loans?

Eligible property types include single-family homes, some townhouses, condos in USDA-approved projects, and new manufactured homes. Investment properties, second homes, and multi-unit properties are generally not eligible.

Do USDA loans have mortgage insurance?

Yes, USDA loans have a guarantee fee (upfront and annual) that acts as mortgage insurance. However, the rates are lower than FHA mortgage insurance premiums, saving you money over time.

Can I use a USDA loan for a home that needs repairs?

Yes, USDA loans can be used for homes that need minor repairs. However, the property must meet USDA property standards and be safe, sound, and sanitary. Major structural issues may need to be addressed before closing.

Is there a loan limit for USDA loans?

Unlike FHA or Conventional loans, USDA loans do not have a maximum loan amount. However, the loan amount is limited by the borrower’s income and ability to repay, as well as the property’s appraised value.

How does a USDA loan compare to a VA loan?

Both USDA and VA loans offer 0% down payment. VA loans are for veterans and active-duty service members, while USDA loans are for low-to-moderate income buyers in eligible rural areas. USDA loans have income limits; VA loans do not. Both offer competitive rates and low mortgage insurance.

Ready to Explore USDA Loan Options?

Our USDA loan specialists can help you determine if you qualify and guide you through the entire process. Get started with a free, no-obligation consultation.

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