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USDA Home Loan: 0% Down Home Loans for Eligible Rural and Suburban Buyers
- Shop 100+ lenders to find your best mortgage rate and get pre-approved in as little as 24hrs. • 0% down, No PMI • 30yrs fixed-rate options • 10–21 days closing
- No impact on credit
- Takes 1 min
Is USDA the Right Option for You?
USDA loans can be a strong option for buyers who want to purchase a home with no down payment, but eligibility depends on both the buyer and the property. The home must be in an eligible rural or suburban area, and household income limits apply.
USDA Home Loan May be Right for You If
- want a no down payment mortgage option
- are buying in an eligible rural or suburban area
- meet USDA household income limits
- want a fixed-rate mortgage
- want to avoid monthly PMI
USDA Loan Requirements
To qualify for a USDA loan, lenders usually look at:
· Property location: the home must be in a USDA-eligible rural or suburban area.
· Household income: USDA income limits apply and vary by location and household size.
· Occupancy: the home must usually be your primary residence.
· Credit profile: USDA does not set one universal minimum credit score, but lenders may have their own requirements.
· Income and employment: stable, documented income is required.
· Debt-to-income ratio: lenders review your monthly debts against your income and overall loan file.
· Cash to close: 0% down does not always mean $0 due at closing; buyers may still need funds for closing costs, prepaid items, or other expenses.
· Guarantee fees: USDA loans may include an upfront guarantee fee and an annual fee.
· Property standards: the home must meet USDA appraisal, lender, and property condition requirements.
A Better USDA Loan Experience: Helping Eligible Buyers Since 1996
From pre-approval to closing, we help buyers understand whether USDA financing fits their property location, household income, and full loan scenario.
Other lenders/Banks
Other
Lenders shopped
100+
Limited to 1
Non QM Loans
Yes
Limited
Minimum credit score
550
640+
DTI Requirements
55%
43%
Fast-track Underwriting
Yes
No
Approval Rate
93%
Lower
Closing time
7-21 days
30 days
Dedicated Loan Officer
Yes
No
Availability
24/7
Limited
Average response time
<1hour
<1 day
Today's live rates
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Client Reviews: 30 Years of 5-Star Mortgage Service
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Frequently asked questions
What is a USDA loan?
A USDA loan is a government-backed mortgage through the U.S. Department of Agriculture’s Rural Development program. It helps eligible buyers purchase a primary residence in an eligible rural or suburban area, often with no down payment for qualified borrowers. USDA confirms the Guaranteed Loan Program is for eligible applicants who meet income rules and occupy the home as their primary residence.
Who should consider a USDA loan?
A USDA loan may be a good fit for buyers who want a 0% down mortgage option, are buying in a USDA-eligible area, meet household income limits, and want a 30-year fixed-rate loan.
Is a USDA loan only for farms?
No. USDA loans are not only for farms. Many eligible homes are in rural and suburban communities. The property simply has to meet USDA location and property eligibility requirements.
What is the minimum down payment for a USDA loan?
Qualified USDA borrowers may be able to buy with 0% down. Eligibility depends on the buyer’s income, property location, occupancy, credit profile, and lender guidelines.
Does a USDA loan have income limits?
Yes. USDA income limits apply, and for the Guaranteed Loan Program, household income generally cannot exceed 115% of the area median household income.
What credit score do you need for a USDA loan?
USDA does not set one universal minimum credit score for the program, but lenders still review credit history and may have their own credit requirements. USDA says applicants are expected to show the willingness and ability to manage debt.
Does a USDA loan require mortgage insurance?
USDA loans do not require traditional private mortgage insurance. However, they may include USDA guarantee fees, including an upfront guarantee fee and an annual fee.
Is USDA better than FHA?
Not always. USDA may be better if you qualify for 0% down financing and the home is in an eligible area. FHA may be better if the property is not USDA-eligible, your household income is above USDA limits, or your scenario fits FHA guidelines more closely.
Can closing costs be included in a USDA loan?
In some cases, yes. USDA says closing costs and reasonable customary expenses associated with the purchase may be included in the transaction. Whether that works depends on the loan structure, appraised value, seller concessions, and lender guidelines.
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- No impact on credit
- Takes 1 min
- No docs needed
