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USDA Loan Programs
100% financing for eligible borrowers purchasing homes in USDA-designated rural and suburban areas.
About USDA Loans
The United States Department of Agriculture Rural Development (USDA) offers home purchase and refinance loan programs for eligible borrowers purchasing homes in approved rural and suburban areas. Many qualifying areas are closer than you might expect.
USDA loans feature fixed-rate financing with no down payment for eligible borrowers. USDA refinance options may allow existing USDA homeowners to reduce their interest rate and monthly mortgage insurance costs, often with limited equity requirements, depending on the refinance program used.
USDA Qualifications
Credit Score
- •Credit scores of 640 or higher typically qualify for streamlined automated underwriting
- •Credit scores below 640 may be considered with additional documentation
- •Credit history reviewed as part of overall loan evaluation
- •Bankruptcy and foreclosure waiting periods apply per USDA guidelines
Employment & Income
- •Stable employment and income history required
- •Self-employed income eligible with documentation
- •Social Security and disability income allowed with required continuance
- •Debt-to-income ratios typically around 43%, with flexibility based on underwriting and compensating factors
Assets & Costs
- •No down payment required
- •Funds needed to cover closing costs (which may be paid by seller or lender credits)
- •Reserves may be required depending on loan scenario
- •Loan amounts subject to USDA program limits and property eligibility
Property Requirements
- •Primary residence only
- •Property must be located in a USDA-eligible area
- •Property must meet USDA appraisal and condition standards
- •Manufactured homes eligible with additional USDA requirements
USDA Program Options
USDA Purchase
Zero down payment home purchase in approved USDA areas.
- Zero down payment for eligible borrowers
- Credit scores of 640 or higher typically qualify for automated underwriting
- Upfront guarantee fee applies (financeable)
- Fixed-rate loan terms available
- Debt-to-income ratios evaluated per USDA guidelines
- Primary residence only
- Seller contributions permitted per USDA rules
USDA Refinance
Refinance your USDA loan with streamlined options.
- Available for existing USDA loans
- Streamlined refinance options may be available for eligible borrowers
- Fixed-rate loan terms offered
- Reduced documentation may apply depending on refinance type
- Primary residence only
- Mortgage insurance costs generally lower than FHA programs