USDA Loan
Zero down. Small town to suburban America.
The USDA Single Family Housing Guaranteed Loan Program offers eligible buyers in rural and many suburban areas the chance to purchase a home with absolutely no down payment. Backed by the U.S. Department of Agriculture, these loans combine $0 down with competitive fixed rates and flexible credit guidelines — making homeownership reachable for moderate-income households across America.
Why choose this loan
Benefits of a USDA Loan
No down payment whatsoever
Like VA loans, USDA loans require zero down payment — 100% financing for the purchase price. The upfront guarantee fee (currently 1% of the loan amount) can be rolled into the loan.
Surprisingly broad geographic eligibility
USDA-eligible areas include not just farmland but thousands of smaller cities, suburbs, and communities with populations under 35,000. Many buyers are surprised to find their target neighborhood qualifies.
Competitive, fixed interest rates
USDA loans are offered at market-competitive fixed rates. With no down payment and a modest annual guarantee fee, total carrying costs are often lower than FHA for eligible borrowers.
Moderate income flexibility
Income limits are set at approximately 115% of the area median income, accommodating a wide range of households — not just the very lowest earners.
Eligibility
Do you qualify?
Typical guidelines for a USDA Loan. Final eligibility is determined during underwriting.
- Property must be located in a USDA-eligible rural or suburban area (check the USDA eligibility map)
- Household income must not exceed approximately 115% of the area median income for your county
- Property must be your primary residence
- Minimum credit score of 640 preferred by most USDA-approved lenders (manual underwrite available below 640)
- Stable, verifiable income and acceptable debt-to-income ratio (typically 41% back-end)
- U.S. citizenship or eligible non-citizen status required
Sample scenarios
Illustrative USDA Loan rates
30-Year USDA Fixed
6.375%
Illustrative; APR ~7.10% including guarantee fee
Upfront guarantee fee
1.00%
Of loan amount; can be financed into loan
Annual fee
0.35%
Of outstanding balance, paid monthly
Rates shown are for illustrative purposes only, are not a quote or guarantee, and do not reflect a specific offer. Actual rates depend on credit score, loan amount, loan-to-value, occupancy, and other factors, and change daily. Contact us for a personalized rate quote.
How it works
Your path to approval
- 1
Check area and income eligibility
Use the USDA's online eligibility map to confirm your target property qualifies, and review the income limit for your county household size — we'll help you do this in minutes.
- 2
Get pre-approved
We'll review your income, credit, and employment to issue a USDA pre-approval that you can present to sellers with confidence.
- 3
Underwriting and USDA conditional commitment
After your lender underwriting approval, the file goes to USDA's Rural Development office for a conditional commitment. We manage this process and set timeline expectations upfront.
- 4
Close and move in
Once the USDA issues its commitment, we schedule closing. With minimal cash required at the table, you can move in without draining your savings.
USDA vs. FHA vs. VA
| USDA | FHA | VA | |
|---|---|---|---|
| Down payment | $0 | 3.5% | $0 |
| Geographic restriction | Rural/suburban eligible areas | None | None |
| Borrower eligibility | Income limits apply | Any buyer | Military/veterans only |
| Mortgage insurance | 1% upfront + 0.35%/yr | 1.75% upfront + monthly MIP | 1-time funding fee |
Frequently asked questions
How do I know if a property qualifies for a USDA loan?
The USDA maintains an online Property Eligibility Map at eligibility.sc.egov.usda.gov. Enter the address and the tool instantly shows whether the location is in an eligible rural area. Many suburban communities outside major metros qualify.
What are the USDA income limits for 2026?
USDA income limits are set at approximately 115% of the area median income for your county and household size. Limits vary widely by location — a household of four in a rural Midwest county might have a limit around $110,000–$120,000, while high-cost areas are higher. We'll look up your specific limit when you apply.
Does USDA require mortgage insurance?
USDA loans carry a guarantee fee instead of traditional PMI. The upfront fee is 1% of the loan amount (financeable into the loan) and an annual fee of 0.35% of the outstanding balance is paid monthly — lower than FHA MIP in most cases.
Can I use a USDA loan to buy a home with acreage?
Yes, though the land must be typical for the area and the primary purpose must be residential. The USDA may limit the acreage or require a land-only value assessment if the parcel is unusually large. We can help you assess your specific property.
Ready to explore a USDA Loan?
Talk to a loan officer today — friendly, no-pressure guidance from real humans.