For Homebuyers, Homeowners & Investors
USDA Loan
Looking to buy a modest home in a rural or suburban area? A USDA Loan could help you get there with zero down.
USDA Loan Features
No down payment required (rare outside of VA loans).
Low fixed interest rates compared to other loan programs.
No Upfront Mortgage Insurance Premium (MIP) unlike FHA loans.
Can be combined with down payment assistance programs for even more savings.
Government guarantee allows lenders to offer favorable terms.
Eligibility Requirements:
- Must purchase in a USDA-eligible area (covers about 97% of U.S. landmass).
- Household income must generally be 115% or less of the area’s median income.
- Must be used for a primary residence only.
- Typically requires a credit score of 620 or higher (varies by lender).
- Home must be modest in size and cost – no luxury estates.
Frequently Ask Questions
Q: What is a USDA Loan?
Answer: A USDA Loan is a government-backed mortgage through the U.S. Department of Agriculture that helps low-to-moderate income families buy homes in eligible rural and suburban areas with no down payment required.
Q: Do I need a down payment for a USDA Loan?
Answer: No. USDA Loans offer 100% financing, meaning you can buy a home without a down payment — one of the biggest benefits of the program.
Q: Who qualifies for a USDA Loan?
Answer: Eligibility is based on income, location, and occupancy. Your household income must generally be 115% or less of the median income in your area, and the property must be located in a USDA-eligible rural or suburban zone. The home must also be your primary residence.
Q: What types of homes can I buy with a USDA Loan?
Answer: USDA Loans can be used to purchase single-family homes, certain condos, manufactured homes, and new construction. The property must be considered modest, safe, and located in an eligible area. Luxury homes, vacation houses, and rental properties do not qualify.
Q: Do USDA Loans require mortgage insurance?
Answer:Yes, but at a lower cost compared to FHA or conventional loans. USDA Loans include a small upfront guarantee fee and an annual fee added to your monthly payment. These fees help keep the program running while keeping costs affordable for borrowers.