At a Glance
- Down payment as low as 0%
- Minimum credit score of 640+
- Best for buyers in eligible rural/suburban areas
USDA loans, backed by the U.S. Department of Agriculture, provide a path to homeownership for moderate-income families in rural and suburban areas. With no down payment required and competitive rates, these loans make buying a home more accessible for those in eligible locations.
Location Eligibility
Despite the name, USDA loans aren't just for farms. Many suburban areas and small towns qualify, including areas near major cities. The USDA eligibility map includes approximately 97% of U.S. land area. We can help you determine if your desired location qualifies.
Income Requirements
USDA loans are designed for moderate-income households. Your household income must not exceed 115% of the area median income. This is based on total household income, not just the borrower's income. Income limits vary by location and household size.
USDA Guarantee Fee
USDA loans require an upfront guarantee fee of 1% of the loan amount and an annual fee of 0.35% paid monthly. These fees are typically lower than FHA mortgage insurance premiums, making USDA loans an affordable option for eligible buyers.
Eligibility Requirements
- Property must be in USDA-eligible rural area
- Household income at or below 115% of area median
- Must be your primary residence
- Credit score typically 640+ (some flexibility available)
- Stable income and employment
- U.S. citizenship or permanent residency
Frequently Asked Questions
What areas are eligible for USDA loans?
Many suburban and rural areas qualify. Use the USDA eligibility map or contact us to check if a specific address is eligible.
Is there really no down payment required?
Correct! USDA loans offer 100% financing, meaning no down payment is required. You'll still need funds for closing costs.
Can I include closing costs in my loan?
In some cases, closing costs can be rolled into the loan if the appraised value exceeds the purchase price.