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    3. USDA Home Loans
    Government

    USDA Home Loans

    "Zero down in more places than you think."

    100% financing for homes in eligible rural and suburban areas. No down payment, below-market rates, and more locations qualify than you'd expect.

    0%

    Min Down

    640+

    Min Credit

    No Limit*

    Max Loan

    Check USDA EligibilityTalk to a USDA Specialist
    Last reviewed: January 2026 · CMS Mortgage Editorial Team

    Is This Loan Right for You?

    This Loan is Perfect If You...

    • Buying in a rural or suburban area
    • Household income below area limits
    • Want zero down payment
    • Looking for competitive fixed rates
    • First-time or repeat homebuyer

    This Might NOT Be Right If...

    • Buying in urban/metro area
    • Household income exceeds area limits
    • Need investment or vacation property
    • Want an adjustable-rate mortgage
    • Property doesn't meet USDA standards

    USDA Home Loans Benefits

    Everything you need to know about your benefits

    Zero Down Payment

    100% financing means you can buy a home without saving for years. Keep your cash for moving, repairs, or emergencies.

    Below-Market Rates

    USDA loans often have the lowest rates available—even lower than VA in some cases. Government backing means lender confidence.

    More Areas Than You Think

    USDA doesn't mean farmland. Many suburban areas, small towns, and communities near cities qualify.

    Low Guarantee Fees

    Just 1% upfront + 0.35% annually—significantly less than FHA mortgage insurance. Saves thousands over the life of your loan.

    Seller Contributions Up to 6%

    Sellers can pay up to 6% toward your closing costs, reducing what you need to bring to closing.

    Flexible for Families

    Income limits increase with household size. Larger families have higher thresholds to qualify.

    How It Works

    Your path to homeownership in just a few simple steps

    Check Your Eligibility

    Use the USDA eligibility tools to verify both your property location and household income qualify.

    Get Pre-Approved

    We'll review your credit, income, and employment to determine your USDA loan amount.

    3

    Find Your Home

    Shop for homes in USDA-eligible areas. Your agent can help identify qualifying properties.

    USDA Appraisal

    A USDA-approved appraiser verifies the property meets program requirements and market value.

    Check Your Eligibility

    Use the USDA eligibility tools to verify both your property location and household income qualify.

    Get Pre-Approved

    We'll review your credit, income, and employment to determine your USDA loan amount.

    3

    Find Your Home

    Shop for homes in USDA-eligible areas. Your agent can help identify qualifying properties.

    USDA Appraisal

    A USDA-approved appraiser verifies the property meets program requirements and market value.

    USDA Underwriting

    Your file is reviewed by both our team and USDA. This can take slightly longer than conventional loans.

    Close & Move In

    Sign your documents with zero down payment and start enjoying your new home!

    Eligibility Requirements

    Two Requirements You Must Meet

    USDA loans have two key requirements. Check both to see if you qualify.

    1. Property Location

    The home must be in a USDA-eligible area. Many suburban areas qualify—you might be surprised!

    Check Property Eligibility

    Enter any address to instantly see if it qualifies for USDA financing.

    2. Household Income

    Your total household income must be at or below 115% of the area median income.

    Typical Limits
    1-4 people~$103,500
    5-8 people~$136,600

    Limits vary by county. These are typical amounts for most areas.

    Check Income Limits
    Lower Than FHA

    USDA Guarantee Fee Explained

    Lower than FHA's 1.75% upfront + 0.55% annual MIP

    1×

    Upfront Guarantee Fee

    One-time at closing

    1.0%

    Can be rolled into your loan amount

    12×

    Annual Fee

    Paid monthly

    0.35%

    Paid monthly as part of your mortgage payment

    Example: $250,000 Loan

    Upfront Fee (1%)

    $2,500

    Added to loan balance

    Monthly Fee (0.35%)

    $73

    Part of your payment

    Calculate Your Payment
    0

    USDA vs FHA vs VA: Zero-Down Options Compared

    FeatureUSDA(This loan)FHAVA
    Down Payment0%3.5%0%
    Location LimitsYes (rural/suburban)NoNo
    Income LimitsYes (115% AMI)NoNo
    Who QualifiesIncome/location eligibleAnyoneVeterans only
    Upfront Fee1.0%1.75%1.25-3.3%
    Annual Fee0.35%0.55%None
    Credit Score Min640580580
    Loan LimitNone*$498K-$1.15MNone
    Best ForRural/suburban buyersFirst-time buyersVeterans

    * Rates and terms subject to change. Contact us for current offers.

    FAQ

    Frequently Asked Questions

    Common questions about USDA Home Loans

    Last updated: May 12, 2026

    What areas qualify for USDA loans?

    USDA-eligible areas include most rural communities and many suburban neighborhoods outside major metro areas. You might be surprised—about **97% of the U.S. land mass** qualifies! Use the USDA eligibility map to check any specific address instantly.

    What are the income limits for USDA loans?

    Your total household income must be at or below **115% of the area median income**. For a family of 1-4 in most areas, that's around **$103,500/year**. Larger households (5-8 people) have higher limits around **$136,600**. Limits vary by county.

    Is there really no down payment?

    Yes! USDA offers true **100% financing** with no down payment required. You will need funds for closing costs, but these can often be covered by seller contributions (up to 6%) or lender credits. Some buyers close with almost nothing out of pocket.

    USDA charges a **1% upfront guarantee fee** (which can be rolled into your loan) and a **0.35% annual fee** paid monthly. This is significantly lower than FHA's mortgage insurance, saving you money each month.
    USDA loans require approval from both the lender and USDA itself, which can add **1-2 weeks** to the process compared to conventional loans. Plan for a **35-45 day** closing timeline. We manage the USDA submission to keep things moving.
    Compare all loan types — Read our comprehensive mortgage guide
    Read the Compare GuideSee how USDA Home Loans stacks up against other mortgage options
    Compare All Programs Side-by-SideDrop USDA Home Loans next to up to 2 others and compare requirements line by line

    Get Rate Drop Alerts

    We'll notify you instantly when rates drop to your target.

    Get Started with USDA Home Loans See Today's Rates
    Top 50 National Brokerage•NMLS #212405

    See If Your Area Qualifies

    Zero down payment. Below-market rates. More locations qualify than you think.

    Check USDA EligibilityTalk to a USDA Specialist

    Or call us directly: (757) 558-2603

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