USDA Loans
No down payment — no military service required.
A government-backed program for homes in eligible rural and suburban areas, offering 100% financing — one of the only true no-down-payment options outside of VA.
Program Highlights
- 0% down payment — 100% financing available
- Below-market mortgage insurance costs compared to FHA: an upfront guarantee fee (around 1% of loan amount) plus a low annual fee
- Income limits apply based on household size and county (typically around 115% of the area median income, though this varies by location)
- Property must be in a USDA-designated eligible area — check eligibility by address
- Competitive, often below-conventional-market interest rates
- More flexible credit guidelines than conventional financing
- Seller can contribute toward closing costs
Best For
- Moderate-income buyers in USDA-eligible rural or suburban areas
- Buyers who meet household income limits for their county
- Anyone open to homes just outside major metro cores
What You'll Need to Qualify
- Property must be in a USDA-designated eligible area
- Household income limits apply (around 115% of area median)
- Primary residence only
- Upfront guarantee fee (~1%) plus a low annual fee
Guidelines vary by lender and borrower profile. All loans subject to underwriting approval. Not a commitment to lend.
Good to Know
"rural" is broader than it sounds — many suburban areas just outside metro cores qualify, so it's worth checking a specific address even if it doesn't feel like "rural" in the traditional sense.
Common Questions
Does the property have to be in the middle of nowhere?
No — USDA eligibility maps include many suburban and smaller-town areas; check the specific address.
Is there an income limit?
Yes, based on household size and county, generally around 115% of the area median income — ask for the limit in your target area.
What's the catch compared to a 0%-down VA loan?
USDA requires no military service but does have geographic and income eligibility requirements, plus a guarantee fee similar in spirit to FHA's mortgage insurance, though typically lower.