USDA Home Loans

USDA loans are designed to support low-to-moderate income home buyers looking to purchase a home in a USDA-eligible area. Since USDA loans are backed by the U.S. Department of Agriculture, this type of mortgage offers low interest rates and 100% financing options. Because there is no down payment requirement, USDA loans put home ownership within reach for many people.

USDA-eligible properties aren’t just located in farming and rural areas. Did you know that around 97% of land in the United States qualifies for a USDA loan? There are even some suburban areas that fall within the eligible locations. If you want to see eligible areas, visit the USDA website.

USDA loans have a minimum credit score requirement and an income limit requirement. Borrowers must fall within the income limits for the area, which are set at 115% of the median income for the geographic area. USDA loans can only be used for a primary residence, so this type of mortgage is not available to home buyers looking for a second home or investment property. The borrower must also be a U.S. citizen, U.S. non-citizen national, or qualified alien.