Unlock 100% Financing For Your Rural Dream Home
No downpayement. Low monthly cost. Flexible credit options.
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USDA guarantee fees
$0/mo
USDA guarantee fees • 1% upfront & 0.35% annual (≈1.7%)
USDA Guaranteed Loan
- Loan Limit: Based on local income and housing costs (typically up to ~$336,500 or more).
- Down Payment: 0% down required (100% financing available).
- Income Requirements: Household income ≤ 115% of median income for the area.
- Credit Score: Recommended 640+ for automated approval.
- Eligible Properties: Must be in USDA-designated rural areas.
- Usage: For purchasing a primary residence only.
- Guarantee Fee: 1% upfront + 0.35% annual (can be rolled into the loan).
USDA Direct Loan
- Loan Limit: Up to $285,000–$377,000 based on county and home specs.
- Income Requirements: Very-low to low-income families (typically ≤ 80% of area median).
- Interest Rate: As low as 1% with payment assistance.
- Down Payment: No down payment required.
- Credit Guidelines: No minimum score; manual underwriting considered.
- Eligible Properties: Rural areas only, must be modest in size/value/design.
- Term: 33–38 years (depending on income).
USDA Home Repair Loan (Section 504)
- Loan Amount: Up to $40,000 (loan), $10,000 (grant if 62+ and income-qualified).
- Use: Repair, improve, modernize, or remove health/safety hazards from rural homes.
- Income Limits: Must be below 50% of area median income.
- Interest Rate: Fixed 1% (loan only).
- Repayment Term: Up to 20 years.
- Eligibility: Must own and occupy the home in a rural area.
Top 5 USDA Loan Myths – Debunked
Myth 1: USDA Loans Are Only for Farmers
USDA loans are designed for rural and suburban homebuyers—not limited to farms or agricultural land.
Myth 2: You Must Live in a Remote Area
Many eligible homes are in suburbs or small towns just outside major cities—check the USDA map to verify.
Myth 3: It’s Only for First-Time Buyers
USDA loans are available to both first-time and repeat homebuyers, as long as you meet the requirements.
Myth 4: USDA Loans Take Too Long
While they require an extra approval step, USDA loans often close within 30–45 days—comparable to conventional timelines.
Myth 5: You Need Perfect Credit
A credit score of 640 or higher is typically sufficient. Manual underwriting is possible with compensating factors.