USDA loans help qualified buyers purchase a primary home in eligible rural and suburban areas with affordable financing. Backed by the U.S. Department of Agriculture, these programs may offer no down payment, low mortgage insurance, and competitive interest rates, making homeownership more accessible for eligible households.
USDA loans are government-backed mortgages designed to help low- to moderate-income borrowers purchase homes in eligible rural and suburban areas. These loans are issued by approved lenders and guaranteed by the U.S. Department of Agriculture (USDA), offering affordable financing with no down payment.
USDA loans are ideal for first-time and repeat homebuyers who meet income and location requirements. They are designed for individuals and families looking for affordable homeownership options in rural and suburban areas.
Unlike conventional loans, USDA loans do not require a down payment. Borrowers must meet income limits and purchase a home in a USDA-eligible area. The program offers fixed-rate mortgages with competitive interest rates and lower mortgage insurance costs compared to FHA and conventional loans.
There are two main types of USDA loans:
USDA Guaranteed Loans – Available through approved lenders, offering zero down payment, low interest rates, and flexible credit requirements.
USDA Direct Loans – Offered directly by the USDA to very low-income borrowers with subsidized interest rates and flexible repayment terms.
USDA loans offer zero down payment, lower interest rates, reduced mortgage insurance costs, and flexible credit requirements. They make homeownership affordable for buyers in eligible rural and suburban areas.
If you are looking for an affordable home loan with no down payment and live in a USDA-eligible area, a USDA loan could be a great option. A mortgage specialist can help determine your eligibility.
Jon Shrum, President of KMC Financial and Team Shrum, helps eligible buyers take advantage of USDA loans with no down payment and affordable financing. He checks property eligibility, explains income limits, and guides you through each step so there are no surprises. With clear advice and local insight, Jon makes USDA home loans simple and stress free.
USDA loans help eligible buyers purchase homes in approved rural and suburban areas with low cost financing. These FAQs explain how USDA home loans work, who may qualify, income limits, property requirements, and why this program can be a great zero down option for primary residences.
A USDA loan is a mortgage backed by the U.S. Department of Agriculture designed to promote homeownership in eligible rural and suburban areas. It offers affordable financing for qualified buyers purchasing a primary residence.
Many USDA loans allow eligible borrowers to buy a home with no down payment, making them one of the few zero down mortgage options available for qualified buyers.
Eligibility depends on household income, location of the property, and your ability to repay. Income limits vary by county and household size, and the home must be in a USDA approved area.
While guidelines vary by lender, many USDA loans prefer a credit score of around 640 or higher for streamlined processing. Lower scores may still be considered with additional review.
Yes. USDA loans have household income limits based on the area and number of people in the home. All adult household income is typically counted, even if not all borrowers are on the loan.
USDA loans require a guarantee fee instead of traditional mortgage insurance. This includes an upfront fee and a small annual fee that is paid monthly, usually lower than FHA mortgage insurance.
Yes. USDA offers refinance options for existing USDA borrowers, including streamlined programs that may allow reduced documentation for eligible homeowners.
