USDA Loans
Financing for eligible primary homes in qualifying rural areas, with no down payment for qualified borrowers.
What is a USDA loan?
A USDA loan is a mortgage backed by the U.S. Department of Agriculture that helps eligible low- and moderate-income borrowers purchase a primary residence in a qualifying rural area. Its biggest benefit is no down payment required for qualified buyers. Eligible locations can include some suburban communities; the property address must meet USDA’s eligibility requirements.
Why would a borrower want one?
- Less money needed upfront: Eligible buyers can finance 100% of the home’s purchase price.
- Preserve savings: Money otherwise used for a down payment can remain available for moving, furnishings, or emergencies.
- A path to homeownership: It can help buyers who can afford monthly payments but have limited down-payment savings.
What can it be used for?
Purchasing an eligible existing home or, through an approved program, building a new home. Certain repairs or improvements may also be included. The borrower must live in the property; it is not for vacation homes or rental investments.
The home’s location and household income must meet USDA requirements, and the borrower must qualify for repayment. No down payment does not mean no closing costs—closing expenses and applicable program fees still need to be addressed. USDA does not guarantee a particular interest rate or approval based solely on location.
