USDA Loans
Zero-down financing for eligible rural and suburban homes.
Overview
USDA loans are backed by the U.S. Department of Agriculture's Rural Development program and are designed to help eligible low-to-moderate income buyers purchase homes in designated rural and suburban areas — which cover more territory than the name suggests, including many communities just outside major metro cores. The program is built around no down payment and generally lower mortgage insurance costs than FHA.
Who It’s For & What You’ll Need
- The property must be located within a USDA-designated eligible area
- Household income must fall within the program’s limits for the area and household size
- A qualifying credit score and debt-to-income ratio under USDA guidelines
- The home must be your primary residence
- The property must meet USDA minimum condition standards, confirmed through an appraisal
Benefits
- No down payment required for eligible borrowers and properties
- Typically lower ongoing mortgage insurance (guarantee fee) costs than FHA
- Competitive fixed rates for eligible borrowers
- Closing costs can sometimes be financed or covered by seller contributions, subject to program limits
Common Scenarios
- A moderate-income household buying their first home in a qualifying suburban or exurban area.
- A buyer with limited savings for a down payment who found a home in a USDA-eligible area.
- A current USDA borrower exploring a USDA refinance once rates improve.
Frequently Asked Questions
How do I know if a property qualifies as "rural"?
USDA maintains an eligibility map covering specific areas, and many properties outside dense urban centers qualify even if they don’t feel remote. We can help you check whether a specific address is eligible.
Are there income limits for a USDA loan?
Yes. USDA sets household income limits based on the area and household size, and exceeding those limits disqualifies a household from the program regardless of the property’s eligibility.
Is USDA financing only for farms or agricultural property?
No — despite the name, USDA loans are for eligible residential homes in qualifying rural and suburban areas, not working farms or agricultural land.
Can I refinance a USDA loan later?
Yes, USDA offers refinance options for existing USDA loans, subject to current program guidelines at the time you refinance.
Related Calculators
Run your own numbers before you apply:
Ready to Move Forward with USDA Loans?
Start your application, or talk it through with a loan officer first — whichever fits where you are.