white house near green leafed trees
Photo by Pixabay on Pexels.com
  • A mortgage loan backed by the United States Department of Agriculture (USDA)
  • Designed to promote home ownership in rural and semi-rural areas
  • Zero down payment required
  • Competitive interest rates
  • Lower mortgage insurance premiums compared to other loan types
  • Both new construction and existing homes are eligible
  • Can be used for purchasing & refinancing

Eligibility Requirements:

  • Must be a U.S. citizen or permanent resident
  • Property must be located in an eligible rural area as defined by USDA
  • Borrower must meet income requirements (usually low to moderate income)
  • Minimum credit score varies, but typically starting around 580
  • Stable employment history


  • 30 year Fixed-rate mortgage only
  • Geographic restrictions apply
  • Income limits based on the median income of the area
  • Not available for investment properties or vacation homes

Application Process:

  • Pre-qualification stage to assess eligibility
  • Submit application along with required documentation (e.g., proof of income, credit report)
  • Property appraisal to determine its market value and ensure it meets USDA standards
  • Underwriting process for final loan approval

Fees and Costs:

  • One-time upfront guarantee fee (can be rolled into the loan amount)
  • Monthly mortgage insurance premiums
  • Closing costs vary but may include appraisal fee, title search, and origination fee


No down payment required

Lower PMI (Private Mortgage Insurance) fees

Flexible credit guidelines

Can be combined with other grant programs for home buyers

Additional Points:

  • USDA Direct Loans are also available for very low-income applicants
  • Streamlined refinance options may be available for existing USDA loans
  • Always consult with a mortgage advisor to understand all options and obligations

Always consult with your loan officer to make sure you’re making the best decision for your specific circumstances.