USDA

A USDA loan is a type of mortgage backed by the U.S. Department of Agriculture designed to help low- to moderate-income homebuyers purchase homes in eligible rural and suburban areas. It's part of the USDA Rural Development Guaranteed Housing Loan Program.

Key Benefits of a USDA Loan

  1. No Down Payment Required
    One of the biggest advantages—buyers can finance 100% of the home’s purchase price.

  2. Low Interest Rates
    Because it’s government-backed, interest rates are typically lower than conventional loans.

  3. Reduced Mortgage Insurance Costs
    Instead of PMI (Private Mortgage Insurance), USDA loans have a guarantee fee, which is usually lower than FHA or conventional PMI rates.

  4. Flexible Credit Guidelines
    USDA loans are accessible even for buyers with moderate or limited credit history.

  5. Allows for Closing Cost Assistance
    You can roll closing costs into the loan or negotiate for the seller to pay them.

  6. Fixed-Rate Terms Only
    No risky adjustable rates—only 30-year fixed-rate mortgages, making payments stable and predictable.

Who Qualifies for a USDA Loan?

  • Must buy a home in a USDA-eligible area (usually rural or suburban).

  • Income must fall within USDA income limits for your area and household size.

  • Must be a U.S. citizen or eligible non-citizen.

  • Must live in the home as a primary residence.