USDA loan
A USDA loan is backed by the United States Department of Agriculture for buying a primary home in an eligible rural or suburban area. Eligible buyers may be able to buy with no down payment.
Buyers of a primary home in an eligible rural or suburban area, with household income within the program's limit.
What a lender will ask for
- A property in an area the program designates as eligible. Many are on the edges of towns and cities, not only in open country.
- Household income within the program's limit for the county and the size of the household. It counts everyone in the household, not only the borrowers.
- The home as your primary residence.
- Income a lender can verify, and a credit history the lender reviews.
- A property that meets the program's standards, established by an appraisal.
What it offers
- Eligible buyers may be able to buy with no down payment.
- The upfront fee can usually be added to the loan rather than paid at closing.
- A route to owning a home in areas many buyers do not realise qualify.
What to weigh up
- The program charges an upfront fee and an annual fee, which work much like mortgage insurance.
- Household income has a ceiling, so a higher-earning household may not qualify.
- The home must be in an eligible area, and the eligibility maps are revised from time to time.
- It is for a primary residence only, not a second home or an investment.
- Fedrate Mortgage is not affiliated with, nor acting on behalf of, the United States Department of Agriculture or any other government agency.
Related loan programs
Start with a pre‑qualification request
Tell us what you want to do and where, and we come back with options compared across multiple wholesale lenders. A pre-qualification request starts it, and nothing is a commitment until a lender has reviewed your file.