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 to help you reach your homeownership goals.
- Backed by USDA Rural Development
- 0% down for eligible buyers
- Eligible rural and 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
- Down payment
- 0% for eligible buyers
- Property
- Eligible area, primary home
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?
Who Is Eligible for a USDA Loan?
USDA loans are available to qualified low- to moderate-income homebuyers purchasing a home in an eligible rural area. Unlike other government-backed loans, USDA loans have two main areas of qualification: borrower eligibility, including household income limits, and property eligibility.
Borrower requirements
- Household income within USDA income limits (generally up to 115% of area median income)
- 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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USDA loan FAQs
Usually not. Eligible borrowers can often finance the full purchase price, subject to credit approval and USDA guidelines.
USDA generally counts the income of all adult members of the household, even those not on the loan. This is separate from the income the lender uses to qualify you for the payment.
USDA does not set a minimum credit score for its guaranteed loan program. Participating lenders may set their own credit requirements; for example, some lenders publish a 640 minimum and others 620.
Sometimes. If the home appraises for more than the purchase price, some closing costs may be financed, and sellers may also contribute toward your costs.
A USDA loan usually requires no down payment but has location and household income limits. An FHA loan can be used almost anywhere and requires at least 3.5% down.
USDA loans charge an upfront guarantee fee, which can usually be financed, and an annual fee paid monthly. There is no private mortgage insurance.