0% DOWN PAYMENT

USDA Rural Housing Loans

Buy a home in eligible rural and suburban areas with no down payment required. 100% financing with competitive rates and affordable mortgage insurance for qualified buyers.

Get Pre-Approved Check Eligibility

0% Down Payment

100% financing means you can buy without needing thousands saved for a down payment

Low Mortgage Insurance

Much lower than FHA or conventional PMI, with only 0.35% annual rate

Flexible Locations

97% of U.S. land area qualifies, including many suburban communities

Program Overview

What Is a USDA Loan?

USDA loans are mortgage products backed by the U.S. Department of Agriculture designed to promote homeownership in rural and suburban communities. The program's most attractive feature is 100% financing—no down payment required—making homeownership accessible to buyers who might not have significant savings.

Despite the name "rural," USDA loans are available in more areas than you might think. Many suburban communities, small towns, and areas on the outskirts of major cities qualify. The property must be in a USDA-eligible area, and buyers must meet income requirements.

USDA Loan at a Glance

Down Payment:

0%

100% financing available

Mortgage Insurance:

0.35%

Annual rate (lower than FHA)

Credit Score:

640+

Minimum recommended

KEY ADVANTAGES

Why Choose a USDA Loan?

USDA loans offer some of the most favorable terms available for homebuyers. Whether you're a first-time buyer or looking to relocate to a qualifying area, USDA financing provides an affordable path to homeownership.

No Down Payment Needed

Keep your savings for moving costs, furniture, and home improvements instead of a down payment

Lower Monthly Payments

Competitive interest rates and low mortgage insurance keep monthly costs affordable

Flexible Credit Standards

More lenient credit requirements than conventional loans, making approval easier

Seller Can Pay Closing Costs

Up to 6% of the purchase price can be paid by the seller, reducing your out-of-pocket expenses

Suburban home
Qualifications

USDA Loan Requirements

Three main eligibility factors determine USDA loan approval

Property Location

  • Must be in USDA-eligible area
  • 97% of U.S. land qualifies
  • Population under 35,000
  • Check eligibility map online

Income Limits

  • Must be at or below area median income
  • Varies by county and household size
  • Steady, reliable income required
  • All household income counted

Credit & DTI

  • 640+ credit score recommended
  • Manual underwriting for 620-639
  • 41% maximum DTI ratio
  • U.S. citizenship or permanent residency

Additional Qualifications

The property must be your primary residence (no investment properties or second homes). The home must meet USDA property standards and pass a home inspection. Both new construction and existing homes qualify, provided they meet safety and livability requirements.

Quick Estimate

Calculate Your USDA Loan Payment

See what your monthly payment would be with 0% down

Common Questions

USDA Loan FAQ

Can I really buy a house with no money down?

Yes! USDA loans offer 100% financing, meaning no down payment is required. You'll still need funds for closing costs, though sellers can contribute up to 6% of the purchase price toward these costs, significantly reducing your out-of-pocket expenses.

What areas qualify for USDA loans?

More than you'd think! About 97% of U.S. land area qualifies, including many suburban communities. Generally, areas with populations under 35,000 are eligible. Use the USDA eligibility map online or ask us to check if your desired location qualifies.

Are there income limits for USDA loans?

Yes, your household income must be at or below 115% of the area median income. Limits vary by location and household size. For example, a family of four in many areas can earn up to $110,000+ and still qualify. We'll help you determine if you meet the income requirements.

What is USDA mortgage insurance and how much does it cost?

USDA loans have two mortgage insurance fees: a 1% upfront fee (rolled into your loan) and an annual fee of 0.35% (divided into monthly payments). This is significantly cheaper than FHA insurance at 0.85% or conventional PMI, which can be 0.5-1.5%.

Can I use a USDA loan to buy a fixer-upper?

The property must meet USDA's minimum property standards at the time of purchase. However, you can use a USDA 504 loan or USDA 502 loan with repair escrow for minor repairs. For major renovations, consider our 203k renovation loan program instead.

How long does USDA loan approval take?

USDA loans typically take 30-45 days to close. The process includes property eligibility verification and USDA underwriting approval. Working with an experienced lender like us can help streamline the process and avoid delays.

Still have questions?

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Client Stories

What Our Clients Say

JH

Jenny H.

They very professional, attentive, always responding to emails and text messages in a quick manner, and very helpful throughout the process. She made the whole process as seamless as possible and most importantly we had a clear to closing in less than a month. I would highly recommend them to your family and friends!!!

TK

Trevor K.

"They are tremendous to work with and true assets for their clients. They always put the people they are helping first and always do whatever they can to help! Great mortgage brokers, even better people!"

JA

Jennifer A.

They great to work with. We've been working for several months together and she was so patient and prompt with the home buying process. Thanks to her great team we where able to close within the month of our offer which in today's market it's not as common. Thank you!!!

Ready to Buy with 0% Down?

USDA loans make homeownership accessible with no down payment, low mortgage insurance, and competitive rates. Let's see if you qualify for this excellent program.

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