Explore USDA Loan
USDA Loan
The USDA Loan, also known as the Rural Development Loan, is a government-backed option aimed at promoting homeownership in eligible rural and suburban areas. This program offers zero down payment requirements and lower mortgage insurance costs.
Best for:
Low to Moderate Income Buyers
Property type:
Eligible
Down payment:
0-3.5%
Loan Term:
30 Years
Rate type:
Fixed Rate
Loan Limits:
Req. Area
Key Benefits
Zero Down Payment
Purchase a home with no down payment requirement.
Purchase a home with no down payment requirement.
Geographic Eligibility
Check the property's location to ensure it's in an eligible rural or suburban area.
Check the property's location to ensure it's in an eligible rural or suburban area.
Reduced Mortgage Insurance
Enjoy lower upfront and annual mortgage insurance costs.
Enjoy lower upfront and annual mortgage insurance costs.
Income Limits
Check eligibility based on your location and income level.
Check eligibility based on your location and income level.
Ideal for Rural and Suburban Homebuyers
Designed for borrowers seeking homes in qualifying rural or suburban communities.
Designed for borrowers seeking homes in qualifying rural or suburban communities.
Commonly asked questions about USDA Loan
What is a USDA Loan?
A USDA Loan is a mortgage program backed by the U.S. Department of Agriculture (USDA) that provides affordable financing options for rural and some suburban homebuyers.
Who is eligible for a USDA Loan?
Eligibility is based on factors such as location, income, and credit history. Borrowers in designated rural areas and meeting income requirements may qualify.
What are the benefits of a USDA Loan?
Benefits include no down payment requirements, potentially lower interest rates, and flexible credit guidelines.
Can I use a USDA Loan to buy a second home or investment property?
No, USDA Loans are intended for owner-occupied primary residences only.
What types of properties are eligible for a USDA Loan?
Eligible properties include single-family homes and certain approved condominiums located in eligible rural areas.
What are the income limits for USDA Loans?
Income limits vary based on the location of the property and the number of household members.
Can I finance the upfront guarantee fee with a USDA Loan?
Yes, the upfront guarantee fee can be financed as part of the loan amount, allowing you to avoid an upfront out-of-pocket payment.
What is the USDA appraisal process?
USDA Loans require an appraisal to determine the property's value and ensure it meets USDA's property standards for safety and habitability.
Can I use gift funds for the down payment on a USDA Loan?
Yes, you may be able to use gift funds from family members or other sources for the down payment.
Is there mortgage insurance on USDA Loans?
Yes, USDA Loans require both an upfront guarantee fee and an annual fee for mortgage insurance to protect the lender.
How do I apply for a USDA Loan?
To apply for a USDA Loan, you'll need to work with an approved lender and provide required documentation, including income verification and property details.
Can I refinance my existing mortgage into a USDA Loan?
Yes, the USDA offers a streamlined refinance program for eligible borrowers who currently have a USDA Loan.
What is the role of the USDA in the USDA Loan program?
The U.S. Department of Agriculture (USDA) guarantees USDA Loans, providing lenders with added security and allowing them to offer more favorable terms to borrowers.
Can I have more than one USDA Loan at a time?
In general, borrowers are limited to one active USDA Loan at a time. Certain exceptions may apply based on specific circumstances.
Are there any restrictions on the location of the property for a USDA Loan?
Yes, USDA Loans are specifically designed for properties located in eligible rural and suburban areas as determined by USDA maps and guidelines.