USDA Loans

If you thought U.S. Department of Agriculture (USDA) loans were just for farmers, think again.

What is a USDA loan?

A USDA Guaranteed Rural Housing Loan is a 30-year mortgage with an interest rate determined by the lender. They were long thought of as just for farmers, but the program has been expanded in recent years to help families without adequate housing finance the purchase of a home in a rural area.

No down payment is required, which sets these loans apart from more traditional home loans.

Little girl diggin in garden
Gravel road leading to farm

Who is eligible?

Applicants may have incomes up to 115% of the area’s median income, be creditworthy, and be able to afford mortgage payments, including insurance and applicable taxes.

  • Purchase property must be in a rural area as defined by the USDA.
  • The property must be owner-occupied.
  • You must meet the income restrictions for the county the property is located in.

Benefits of a USDA Loan

  • Better terms than a FHA or conventional loan
  • FICO as low as 600 may still qualify