Traditional Home Financing
USDA Loans
USDA Loans offer eligible borrowers in rural and suburban areas a great way to finance their home with no down payment, no mortgage insurance, and flexible requirements.
What is a USDA Loan?
A USDA Loan is a mortgage backed by the U.S. Department of Agriculture (USDA) that helps low-to-moderate income buyers purchase a home in qualifying rural and suburban communities. One of the biggest benefits of a USDA Loan is the ability for qualified borrowers to finance up to 100% of a home's purchase price, eliminating the need for a down payment. USDA Loans are available for primary residences only and require both the borrower and the property to meet USDA eligibility guidelines.
Highlights
USDA Loan features
Who could benefit
Is a USDA Loan right for you?
A USDA Loan may be a great fit if you:
- Want to buy a home with $0 down
- Are purchasing a home in an eligible rural or suburban area
- Are buying a primary residence
- Have low-to-moderate income
- Want a government-backed mortgage with competitive financing
Property Eligibility
Is my home in a USDA-eligible area?
Did you know?
You don't have to live on a farm or in a remote area to qualify for a USDA Loan. Many communities just outside larger cities are USDA eligible, so it's worth checking before ruling yourself out. Use the USDA Eligibility Map to see if the home you're want to buy qualifies.
Income Eligibility
Can I Qualify for a USDA Loan?
Unlike Conventional, FHA, and VA Loans, USDA Loans don't have a standard maximum loan limit. Instead, eligibility is based on your household income, monthly debts, property location, and ability to repay the loan. USDA Loans are designed for eligible low- to moderate-income households, and income limits vary by county and household size.
Guarantee Fees
Understanding USDA guarantee fees
Instead of private mortgage insurance (PMI), USDA Loans require guarantee fees.
Upfront Guarantee Fee
A one-time fee that's typically financed into your loan amount, so most borrowers don't pay it out of pocket at closing.
Annual Guarantee Fee
A small annual fee that's divided into monthly payments and included as part of your mortgage payment.
Still not sure if a USDA Loan is right for you?
If you’re still not sure if an USDA Loan is right for you, we’d be happy to talk. Either contact us or get started on your preapproval and to see how much you can afford, and we can talk best loan fit after.
FAQ
Frequently Asked Questions
We’re here to help! Find answers to your everyday banking questions.
No. Qualified borrowers may be able to purchase a home with 0% down, making USDA Loans one of the few mortgage programs that offers 100% financing.
Eligibility is based on factors including household income, property location, occupancy, credit profile, and lender guidelines.
Yes. USDA Loans have household income limits that vary based on where you're purchasing a home and the number of people in your household.
No. USDA Loans don't have traditional loan limits. Instead, the amount you can borrow is based on your financial qualifications and ability to repay the loan.
USDA Loans don't require private mortgage insurance (PMI). Instead, they require an upfront guarantee fee and an annual guarantee fee.
No. The property must be located in an eligible USDA area and be used as your primary residence.
No. USDA Loans are only available for owner-occupied primary residences.