USDA Loans
HomyLoan helps eligible buyers access USDA loans backed by USDA Rural Development, with 0% down in qualifying rural and suburban areas and personalized service from application to closing.
- 0% down for eligible buyers
- Household income limits apply
- Rural and some suburban areas
The basics
What Is a USDA Loan?
A USDA loan is a mortgage guaranteed by the U.S. Department of Agriculture through the USDA Rural Development Guaranteed Housing Loan Program. Designed for homes in eligible rural and some suburban areas, USDA loans offer 0% down financing to qualified low- to moderate-income homebuyers who meet household income limits.
- Guaranteed by
- USDA Rural Development
- Income
- Household limits apply
- Fees
- Upfront and annual guarantee
How it works
Your USDA loan in four steps
From pre-approval to closing, you work with one licensed loan officer who keeps things moving.
- 01
Get pre-approved
Share your income, assets and credit. Your loan officer checks your household income against USDA limits for your area.
- 02
Find an eligible home
Shop for a home in a USDA-eligible area. We help you confirm the address on the USDA property eligibility map before you make an offer.
- 03
Underwriting and USDA review
The lender underwrites your file and the appraisal, then sends it to USDA Rural Development for the loan guarantee.
- 04
Close and get your keys
Review your Closing Disclosure, including the upfront guarantee fee (which can usually be financed), then sign and move in.
Why borrowers choose USDA
Top USDA Loan Benefits
Backed by USDA Rural Development, a USDA loan offers standout advantages for homebuyers in eligible rural and suburban areas, especially when it comes to the down payment.
0% down payment with 100% financing
Option to finance eligible closing costs
Flexible credit and qualifying guidelines
Seller may contribute up to 6% toward closing costs
Gift funds allowed for eligible costs
Available for home purchase or refinance
Do you qualify?
USDA loan eligibility requirements
USDA looks at both you and the home. Here is what eligible borrowers generally need.
Income limits
Total household income must be within USDA income limits for the area.
Eligible location
The home must be located in an eligible rural or suburban area.
Primary residence
The property must be your primary residence (no second homes or investment properties).
Ability to repay
You must show an acceptable credit history and the ability to repay, including property taxes and homeowners insurance.
Guarantee fees
USDA loans include an upfront and annual guarantee fee, which can help make 0% down financing possible.
- Get pre-approved
Not sure you qualify?
A licensed loan officer can check your address and household income and tell you which loan fits, USDA or otherwise.
Borrower requirements
- Household income within USDA income limits
- No USDA minimum credit score; lenders may set their own
- Stable, dependable income
- U.S. citizen, non-citizen national or qualified alien
Property requirements
Location
The property must be in an eligible rural area, as shown on the USDA property eligibility map.
Primary residence
The home must be the buyer’s primary residence.
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Ask Homy anything about home loans
Hi, it's Homy! I can explain loan programs, down payments and the steps to buy or refinance in Texas. For advice on your situation, a licensed loan officer is one tap away.
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USDA loan FAQs
A USDA loan is a mortgage guaranteed by USDA Rural Development for eligible buyers in eligible rural and some suburban areas. Most eligible borrowers can buy with no down payment.
Check the address on USDA's property eligibility map. Many small towns and areas outside major Texas cities may qualify, and your loan officer can confirm before you make an offer.
Your household income must be within the USDA limit for the county and your household size. The limits change over time, so your loan officer checks the current figures for your area.
USDA loans have no PMI, but they have an upfront guarantee fee, which can usually be financed, and an annual fee paid monthly.
No. You don't need to be a first-time buyer, but the home must be your primary residence.
No. USDA loans are only for a primary residence you will live in.