Buy a Home withZero Down100% Financing
The best-kept secret in home financing— available in more areas than you think.
Ready to Get Started?
Whether you're buying your first home or refinancing, select your state to see USDA options available to you.
Buy a Home
Purchase with $0 down
Use USDA financing to purchase a home with 100% financing—no down payment required.
Select your state:
Refinance
Lower your rate or term
Already have a USDA loan? Streamline refinance with minimal paperwork—no appraisal needed.
Select your state:
Not sure yet? Keep reading to learn everything about USDA loans before you decide.
Watch &Understand
Official training videos from USDA Rural Development—straight from the agency that runs the program.
USDA Guaranteed Loan Program Overview 101
Official overview of the Single Family Housing Guaranteed Loan Program from USDA Rural Development.
Video Playlist
3 official USDA videos
All videos from official USDA Rural Development channel
Zero Down Payment
One of only two loan programs (with VA) that offers true 100% financing with no down payment required.
Broader Eligibility Than Expected
97% of U.S. land qualifies as "rural"—including many suburban areas just outside city limits.
Income Limits Apply
Household income cannot exceed 115% of area median income—but limits are higher than many expect.
What Is a USDA Loan?
A USDA loan is a government-backed mortgage designed to help low-to-moderate income families purchase homes in eligible rural and suburban areas. Officially called the "Section 502 Loan Program," it's administered by the U.S. Department of Agriculture's Rural Development division.
100% Financing
No down payment required. Finance the entire purchase price of your home—one of the only loan programs that offers this.
Rural & Suburban Areas
Property must be in USDA-eligible area. Check the eligibility map—you may be surprised what qualifies.
Income Limits
Your household income must be at or below 115% of the area median income (AMI). Limits vary by county and household size.
Key Things to Know
No PMI (private mortgage insurance)
USDA has a guarantee fee instead, which is typically lower than PMI
Competitive interest rates
Often lower than conventional loans due to government backing
Flexible credit requirements
No official minimum credit score (though lenders may have overlays)
Primary residence only
You must live in the home—cannot use for investment properties
USDA Direct vs. Guaranteedvs. FHA
There are two types of USDA loans—and they're often compared to FHA loans. Here's how they stack up for rural and suburban homebuyers.
| Feature | USDA Direct | USDA Guaranteed | FHA Loan |
|---|---|---|---|
| Who Provides the Loan? | USDA directly | Private lenders (banks, credit unions) | Private lenders (banks, credit unions) |
| Down Payment | 0% | 0% | 3.5% minimum |
| Income Limits | Low/Very-Low Income (50-80% AMI) | Moderate Income (up to 115% AMI) | No limits |
| Location Requirements | Rural areas only | Rural areas only | Anywhere |
| Interest Rate | As low as 1% (with payment assistance) | Market rates (competitive) | Market rates |
| Mortgage Insurance | None | 1% upfront + 0.35% annual (guarantee fee) | 1.75% upfront + 0.85% annual (MIP) |
| Credit Score | No minimum (manual underwriting) | No official minimum (lenders often want 640+) | 500-579 (10% down) 580+ (3.5% down) |
| Loan Term | 33-38 years | 30 years | 15 or 30 years |
| Processing Time | 2-6+ months (government backlog) | 30-45 days | 30-45 days |
| Best For | Very low income buyers who can wait for processing | Most rural buyers faster closing, 0% down | Urban/suburban buyers lower credit OK |
Our Recommendation
For most eligible buyers, the USDA Guaranteed loan is the better choice—it's faster to close, works with standard lenders, and still offers 0% down. The Direct loan is worth exploring if you have very low income and can afford to wait several months, as the subsidized interest rates can be as low as 1%.
How USDA Loans Work
From eligibility check to closing day, here's what to expect when applying for a USDA Guaranteed loan.
Check Eligibility
Verify your income is under 115% AMI and property is in USDA-eligible area.
Get Pre-Approved
Work with an approved lender to get your pre-approval letter.
Find Your Home
House hunt in USDA-eligible areas. Most suburban areas qualify!
USDA Underwriting
Lender submits to GUS (Guaranteed Underwriting System) for approval.
Close & Move In
Sign documents, get the keys, and enjoy your new home—with $0 down!
Key Requirements & Details
Everything you need to know about qualifying
Common Use Cases for USDA Loans
USDA loans help a diverse range of buyers achieve homeownership. Here are the most common scenarios—along with honest considerations for each.
First-Time Homebuyers
Young families and individuals buying their first home, often with limited savings for a down payment.
Must intend to live there—no house hacking allowed.
Moving to the Suburbs
City dwellers looking for more space, better schools, or a quieter lifestyle just outside urban areas.
Check eligibility map—areas can lose status as towns grow.
Growing Families
Families needing more bedrooms, a bigger yard, or room for aging parents to move in.
All household income counts—even adult children's.
Relocating for Work
Professionals moving to new jobs in smaller cities, towns, or rural areas where USDA loans apply.
If selling within 3 years, consider closing costs carefully.
New Graduates & Career Changers
Young professionals starting careers who haven't had time to save 5-20% for a conventional down payment.
Verify income history requirements with your lender.
Rural Lifestyle Seekers
Remote workers and retirees seeking acreage, quiet, and a slower pace of life in true rural areas.
Working farms don't qualify—home must be residential.
Risks & Limitations to Understand
USDA loans are an incredible opportunity—but they come with specific requirements and limitations. Here are the concerns we hear most often.
"Will I even qualify? I make too much money."
THE CONCERN
People often assume they earn too much for USDA's income limits and don't even bother checking.
THE REALITY
Income limits are higher than most expect—up to 115% of Area Median Income. Plus, you can deduct childcare, dependents, and elderly care from your income calculation. Many families earning $90K-$110K+ still qualify.
Don't self-disqualify. Use the official income eligibility calculator before giving up.
"Why does it take so long to close?"
THE CONFUSION
Horror stories of 6-month USDA closings make people avoid the program entirely.
THE REALITY
Those delays are for USDA Direct loans (where USDA is the lender). The USDA Guaranteed loan you get through a normal lender closes in 30-45 days—same as any other mortgage.
We offer USDA Guaranteed loans—standard closing timelines, no government backlog.
"Can I ever rent it out or buy another home?"
THE RESTRICTION
USDA loans require you to live in the home as your primary residence. No investment properties, no house hacking, no Airbnb.
THE REALITY
You must live there as your main home for the life of the loan. However, you can refinance into a conventional loan later if you want to convert it to a rental or buy a second home.
If investment potential is your goal, USDA isn't the right loan for you.
"Do I have to repay the subsidy if I sell?"
THE HIDDEN COST
USDA Direct loans have "payment assistance" that subsidizes your rate—and if you sell at a profit, you may owe some of it back.
THE REALITY
USDA Guaranteed loans (what we offer) do NOT have subsidy recapture. This is only a concern for Direct loans. You can sell your home anytime without repaying any subsidy.
With USDA Guaranteed: sell anytime, keep your profits, no recapture.
Is a USDA Loan Right for You?
Answer honestly. A USDA loan may be a great fit if you check most boxes on the left, but may NOT be right if you check boxes on the right.
May Be a Good Fit
- Want to buy with $0 down
- Household income under 115% AMI
- Buying in a suburban or rural area
- Plan to live in the home long-term
- Want competitive rates without PMI
- Don't qualify for VA (not a veteran)
May NOT Be Right
- Want to buy in a major metro area
- Household income exceeds limits
- Want to rent rooms or Airbnb
- Buying as an investment property
- Want a fixer-upper or flip project
- Eligible for VA loan (often better)
Our Honest Position
USDA loans are genuinely one of the best-kept secrets in mortgage lending—100% financing, competitive rates, and lower fees than FHA. But they're not for everyone.
If you're buying in an eligible area, meet the income requirements, and plan to live in the home as your primary residence, this could save you thousands. If you want to house hack, invest, or flip—this isn't the program for you.
Don't assume you don't qualify. Check the eligibility map, run the income calculator, and talk to a lender who knows USDA programs inside and out. That's what we're here for.
Consumer Rights & Protections
USDA loans are government-backed with strong borrower protections. Here's what you're entitled to.
Government-Backed Guarantee
USDA guarantees 90% of your loan to the lender. This means competitive rates and easier approval for qualified buyers.
- Lower rates than conventional loans
- More flexible credit requirements
- 100% financing available
Required Disclosures (TRID)
Federal law requires lenders to provide clear, written disclosures about all costs before you commit.
- Loan Estimate within 3 days
- Closing Disclosure 3 days before closing
- Compare final vs. estimated costs
No Prepayment Penalties
Pay off your USDA loan early, refinance, or sell your home without any penalty.
- Refinance anytime without fees
- Make extra principal payments
- Sell home anytime—keep your equity
Understanding USDA Loan Costs
USDA loans have lower fees than FHA or conventional loans. Here's the complete breakdown:
| Fee Type | Amount | Notes |
|---|---|---|
| Upfront Guarantee Fee | 1% of loan amount | Can be financed into loan; lower than FHA's 1.75% |
| Annual Fee | 0.35% per year | Added to monthly payment; much lower than FHA's 0.55% |
| Closing Costs | $2,000 - $5,000 | Appraisal, title insurance, recording fees, etc. |
| Appraisal | $400 - $700 | Must meet USDA property requirements |
| Origination Fee | 0% - 1% | Varies by lender; some charge none |
| Down Payment | $0 | 100% financing—no down payment required! |
Seller Concessions Allowed: Sellers can pay up to 6% of the purchase price toward your closing costs. Many USDA buyers close with $0 out of pocket.
USDA Loan QuestionsAnswered
Real questions from real homebuyers. Honest, complete answers from experienced mortgage professionals.
Program Basics
Requirements & Qualifications
Application Process
Property & Location
Ownership & Future Plans
Check Your USDA Eligibility
Use USDA's official tools to check property eligibility and income limits for your area—before you start house hunting.
Ready to Buy with Zero Down?
USDA loans are one of the best-kept secrets in mortgage lending. If you're buying in an eligible area and meet income guidelines, you could own a home with no money down.
Let's check your eligibility together. No pressure, no obligation—just honest answers about whether this program is right for you.
Official USDA Resources