Finance · USDA Loan Program

USDA Loans. $0 Down for Rural and Suburban Buyers.

You do not have to live on a farm to qualify. USDA loans offer $0 down, low fees, and competitive rates in eligible rural and suburban areas, which cover more ground than most buyers expect.

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Down payment

0.35%

Annual guarantee fee

115%

Of area median income

What it is

Government backed, $0 down, more areas qualify.

A USDA loan is a mortgage backed by the U.S. Department of Agriculture. Despite the name, it is not just for farmers. It helps low to moderate income buyers purchase homes in eligible rural and suburban areas with no down payment.

Eligibility comes down to two things: the property location and your household income. Both must qualify, but both are more flexible than most buyers assume, and we can check them for you.

Why buyers choose USDA

No down payment

USDA requires $0 down. The 1% upfront guarantee fee can be rolled into the loan, so closing takes minimal cash.

Lower ongoing fee

The 0.35% annual guarantee fee is lower than FHA annual mortgage insurance, saving eligible buyers on the monthly payment.

More areas qualify

A large share of land is USDA eligible, including many suburban communities outside major metro cores that buyers are already considering.

Refinance options

Existing USDA borrowers may qualify for a Streamlined Assist refinance, often with no appraisal when payments have been on time.

How USDA compares

General guidelines only. Actual requirements vary by lender and scenario.
Feature	FHA	VA	USDA	Conventional
Down payment	3.5%	$0	$0	3 to 5%
Mortgage insurance	MIP	None	0.35%/yr fee	PMI until 20% equity
Typical min. credit	580	Lender set	640	620+
Loan limits	County limits	Full entitlement	No hard cap	Conforming limit
Property use	Primary	Primary	Primary (eligible area)	Any
Who it fits	Most buyers	Veterans & military	Rural/suburban, income eligible	Good credit buyers

A USDA loan may fit if you are…

Buying in an eligible rural or suburban area
Within your county household income limit, about 115% of area median
Purchasing a primary residence to live in
Looking to buy with little or no cash for a down payment
Comfortable with a credit score around 640 or working toward it

Common questions

USDA loan FAQ

Do I have to buy rural land or a farm?

No. USDA loans apply to standard residential properties, including single family homes, condos, and townhomes, in areas the USDA designates as rural or suburban. Many are established neighborhoods, not remote countryside.

How do I know if a property qualifies?

You can enter the address into the USDA official eligibility map, or we can check it for you as part of a free review. Many suburban areas outside major metro cores qualify.

How does the income limit work?

It is based on total household income, meaning everyone living in the home, and is set around 115% of the area median for your county and household size. Certain deductions can reduce your counted income.

What are the USDA fees?

USDA charges an upfront guarantee fee, about 1% and financeable, plus a lower annual fee, about 0.35% of the balance paid monthly, instead of traditional mortgage insurance.

Can I refinance a USDA loan?

Yes. The USDA Streamlined Assist program lets eligible borrowers refinance with reduced documentation and, in most cases, no appraisal, provided payments have been on time.

Free, no obligation

Check your USDA eligibility

Share a few details and a licensed advisor will check your property and income against current USDA guidelines. Free, fast, and no obligation.

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