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Zero down outside the city, and more places count as rural than you think.

USDA guaranteed loans finance 100% of the purchase price in eligible areas, which include most towns and suburbs outside major metros. Income must fall under 115% of the area median, and the guarantee fee is lower than FHA mortgage insurance.

Minimum down0%
Income limit115% of area median
Guarantee fee1% upfront, 0.35% yearly
LocationUSDA-eligible area
See if I qualifyCall (800) 511-3330
4.4 on Google · 214 reviewsNMLS 13988Licensed in 15 states + DC
Who it's for

Is the USDA purchase loan right for you?

  • Buyers in small towns, suburbs and rural areas
  • Households under the USDA income limit for their county
  • First-time buyers with little saved for a down payment
  • Buyers who want a lower monthly insurance cost than FHA
How it works

Three steps from here to closing.

Check the address and income

We confirm the property is in an eligible area and your household income is under the limit.

Pre-approval and offer

Standard underwriting, then a USDA appraisal.

USDA review and closing

The file goes to USDA for a final commitment after underwriting, so allow a few extra days.

What you'll need

Requirements at a glance.

  • Property in a USDA-eligible area (we check the address)
  • Household income at or below 115% of the area median
  • Credit score of 640 for streamlined approval
  • Primary residence only
  • Debt-to-income ratio generally 29% housing and 41% total, higher with compensating factors
Straight talk

The upside, and what to weigh.

Why people choose it

  • 100% financing, with closing costs financed into the loan when the appraisal allows
  • Annual fee is roughly half of FHA mortgage insurance
  • Below-market fixed rates

Things to consider

  • Income and location limits rule some buyers out
  • USDA's final review adds time to the closing
Common questions

Asked on almost every first call.

Is my town rural enough?

Probably. Much of South Jersey, central Pennsylvania, Delaware and the Carolinas outside the cities qualifies. We check the exact address.

Do I have to be a first-time buyer?

No. You cannot own another adequate home at closing.

What if my income is over the limit?

Then FHA or conventional with down payment assistance is usually the next best fit.