Loan Programs for designated areas
USDA home loans are guaranteed by the United States Department of Agriculture (USDA) and provide affordable financing options for properties located in designated areas in small towns, suburbs and exurbs.
This program helps eligible low- to moderate-income families achieve homeownership by offering a no down payment option.
- 100% financing + required guarantee fee
- Low interest rates
- Low FICO score requirements
- Low closing costs
- 30-year, fixed-rate mortgage
- Gift funds can be used for closing costs
USDA Mortgage Eligibility
Eligibility is determined by property location, size and condition, along with borrower’s income and other program guidelines. Some requirements include:
- Eligible locations are determined and published by the USDA
- Similar to other government programs, maximum loan amounts are location specific
- Household income must be sufficient to cover all monthly payments, including property taxes and USDA guarantee fees
- Household members can have a total income of up to 115% of the medial income for the area