A government-backed home loan for eligible areas. See if you may qualify.
A USDA loan is a mortgage backed by the U.S. Department of Agriculture. It helps moderate-income buyers purchase a home in an eligible area. Many of these areas are rural. Some are also small towns and suburbs.
Because the government backs the loan, lenders can offer flexible rules. As a result, USDA loans help many buyers who might not fit other loan types.
A USDA loan may be a good fit for a few reasons.
Still, USDA loans have rules and costs. Let’s look at those next.
USDA loans have two types of fees:
Because of this, the loan costs more than the rate alone shows. So, ask us for the full cost of any loan before you decide.
Each program has its own rules. In general, USDA loans require that:
USDA loans are not for investment homes. In addition, income limits vary by area and household size. So, ask us how your numbers look.
Eligibility depends on the address, not just the town. Some places that feel like the city may still qualify. Others that seem rural may not. For this reason, check the address early. USDA offers an online map for this. We can also check it with you.
USDA loans can have lower upfront costs. However, they come with income and location rules. In contrast, FHA loans have no location rule. VA loans are open only to eligible veterans and service members. A conventional loan may work if you have strong credit and savings.
So, which one is best? It depends on your income, savings, and the home you want. We can compare them for you.
Getting started is simple.
Some USDA borrowers may not need one. However, this depends on the loan and your finances. Even so, you may still have closing costs. We can show you the numbers. To plan ahead, try our home affordability calculator.
Rules vary by lender. In general, stronger credit gives you more options. Ask us what may work for your situation.
Often, yes. Gift funds may help with closing costs or other needs. Rules vary, so ask us first.
Yes. Limits depend on your household size and where you live. We can check them with you.
No. USDA loans are for a home you plan to live in. If you plan to rent it out, see our DSCR loans.
Some programs allow it. However, refinancing has costs. So, compare the new rate, payment, and fees first. Our refinance calculator can help.
USDA loans have their own fees, which work like insurance. The amount depends on your loan. Ask us for the details.
Buying a home is a big decision. That is why we give clear answers and simple options. As a mortgage broker, we can compare more than one path for you. Get your free quote today. Then see if a USDA loan fits your plans.
There are many benefits, including: no down payment required; borrowers who qualify for a USDA Rural Development home loan have the flexibility to pay nothing out of pocket for a down payment. Additionally, the USDA Loan allows borrowers to use a gift or grant to go toward their mortgage.
