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USDA Rural Development Loans

Zero down payment mortgages for eligible rural and suburban properties

What is a USDA Loan?

USDA Rural Development loans are government-backed mortgages designed to promote homeownership in rural and suburban areas. These loans offer 100% financing with no down payment required for eligible borrowers purchasing homes in USDA-designated areas.

No Down Payment

100% financing available for qualified borrowers

Low Interest Rates

Competitive rates backed by government guarantee

Rural Focus

Promotes homeownership in less populated areas

USDA Loan Benefits

0%
Down payment required
115%
Of area median income limit
640
Minimum credit score
97%
Of US land area eligible

USDA Eligible Areas

Rural communities with population under 35,000
Suburban areas not part of metropolitan areas
Towns with populations between 10,000-20,000
Areas designated as rural by USDA

Check Property Eligibility

Use the USDA Property Eligibility Map to verify if a specific address qualifies for USDA financing.

USDA Loan Options

30-Year Fixed
Rate: 6.00% - 6.50%
Monthly payment on $200K loan: $1,199

Most popular USDA option with stable payments

15-Year Fixed
Rate: 5.50% - 6.00%
Monthly payment on $200K loan: $1,634

Faster payoff with lower total interest

USDA Loan Requirements

Credit Score
640 minimum
Down Payment
0%
Location
Rural/Suburban
Income Limits
115% of median

USDA Income Limits

USDA loans have income limits based on the area median income. Your household income cannot exceed 115% of the area median income.

Family of 1-4
$119,850

2026 general income limit (most areas)

Source: USDA Rural Development

Family of 5-8
$158,250

2026 general income limit (most areas)

Source: USDA Rural Development

High-Cost Areas
Higher

Limits adjusted for expensive markets

USDA Loan Pros and Cons

Advantages

  • No down payment required
  • Low interest rates
  • Flexible credit requirements
  • No prepayment penalties
  • Lower mortgage insurance than FHA

Considerations

  • Limited to eligible rural/suburban areas
  • Income limits apply
  • Primary residence only
  • Longer processing times
  • Guarantee fee required

Ready to Apply for a USDA Loan?

Compare lenders experienced with USDA rural development loans and property eligibility requirements.

Non-affiliated lenders. Your experience may vary.