USDA Home Loans

Purchase your home in rural or suburban areas

USDA loans make homeownership affordable

The United States Department of Agriculture, or USDA, offers affordable home loans with no down payment and low interest rates. If you're buying a home in a rural or suburban area, a USDA loan could be the perfect financial option for you.

100% financing

USDA rural development loans may cover up to 100% of the purchase price.

Enjoy low rates

Rates on USDA home loans can be lower than conventional mortgages.

Live off the land

The property you intend to purchase must be on USDA-eligible land.D

Purchase your home in rural or suburban areas
USDA Loan Benefits

Special savings for rural buyers

No down payment

USDA Rural Development loans can cover 100% of the purchase price.

Low interest rates

USDA mortgages offer lower interest rates than conventional mortgages.

No PMI requirement

Borrowers can save big each month by avoiding costly private mortgage insurance, or PMI.

Affordable rural living

USDA loans make rural homeownership possible for those who don't qualify for conventional loans.

USDA Loan Requirements

Qualify for a USDA home loan

Create an account in our online application platform. Here's what you'll need to apply for a USDA home loan.

  • Social Security number
  • Employer contact information
  • Estimated income, assets and liabilities
  • Details on the property you're interested in buying

Financing your USDA loan

Start your rural or suburban homebuying journey today.

Step 1

Assess your USDA loan readiness

Contact a USDA loan mortgage advisor to assess your readiness. Discuss terms, pricing, options and payments. We can help you find a mortgage banker.

Step 2

Apply for a USDA mortgage

Use our online platform to apply for mortgage and submit supporting documentation that will be used to process your USDA loan application.

Step 3

Await loan approval

Underwriting will process your USDA loan application and review your documentation. Provide answers to questions and additional documentation as requested.

Step 4

Close on your USDA mortgage

You'll receive your closing date and meet with your lender and closing attorney to close on your new mortgage.

FAQ

People often ask us

A USDA home loan is a special type of mortgage backed by the US Department of Agriculture. These mortgages are part of the USDA's Rural Development Guaranteed Housing Loan Program. With great interest rates and no down payment necessary, USDA loans make homeownership more affordable to people in rural areas who might not qualify for conventional mortgage loans.

Get started by getting pre-qualified for a USDA mortgage online or by calling us at 888-280-2885. You can also search our local directory to find a mortgage banker near you. Once you're pre-qualified, you can apply for a USDA rural development loan and turn your dream of buying a rural or suburban home into a reality.

Unlike most conventional mortgage loans, USDA home loans don't require a down payment. They do require mortgage insurance, but it differs from private mortgage insurance, or PMI, because it's capped at 1% of your loan amount and can be rolled into your loan. There's also an annual premium that's divided by 12 and added to your monthly payment.

To qualify for a USDA home loan, the house you're purchasing must be in an eligible rural area and your income needs to be below the eligibility cap for that area. Lenders will also consider your debt-to-income ratio, or DTI, and your credit score. Preferred borrowers will typically have a DTI under 43% and a credit score of 640 or above.

No. Homes purchased with USDA loans must be your primary residence, not a vacation or investment property. However, this doesn't mean you have to be a first-time homebuyer. Repeat buyers can also qualify for this unique mortgage program.

Normal credit approval applies.

Not applicable in all states.

To be eligible for the USDA home loan, you must be purchasing a property in a rural area (as defined by the USDA) and you must meet regional income restrictions.

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