Loan Programs
USDA Home Loans
Zero down payment on eligible properties, backed by the Department of Agriculture. The word rural does most of the work in scaring people off this program, and the eligibility map is considerably more generous than the name suggests.
Why This One
What USDA Gives You
No down payment
One of only two zero-down programs available, alongside VA.
Lower monthly mortgage insurance than FHA
The guarantee fee structure is generally cheaper than an FHA premium.
Competitive fixed pricing
30 year fixed, backed by a federal guarantee.
Broader eligibility than the name implies
Plenty of suburban and edge-of-metro addresses qualify. Worth checking before ruling out.
The Basics
What USDA Asks For
- Property must sit inside an eligible area on the USDA map
- Household income must fall under the limit for that county and household size
- Primary residence only
- Credit and debt-to-income standards apply
- Guarantee fee applies, upfront and annual
- 30 year fixed terms
The Honest Part
Where USDA Costs You
Two hard gates, and both are pass or fail. The property has to be in an eligible area, and your household income has to be under the cap. Not your income, the household's, including people who are not on the loan. Plenty of buyers clear one and fail the other.
The income cap in particular catches dual-earner households by surprise. It is worth checking early rather than after you have found a house.
Processing can also run longer than conventional because of the agency review step. If you are competing on a tight closing timeline, factor it in.
FAQ
Frequently Asked Questions
Check the Address Before You Rule It Out
Two minutes to confirm whether a property and your household clear both gates. Most people who assume they do not qualify never actually check.