Loan Options • USDA Loans

USDA loans · No-down-payment options in eligible rural areas

USDA home loans for rural & small-town buyers.

USDA’s Guaranteed Rural Housing program is designed to help low-to-moderate income households purchase a safe, modest home with 0% down in eligible areas and a stable 30-year fixed rate.

Income, location, and property rules are built into the program so it stays focused on the communities it was designed to serve. We’ll help you sort through those details in plain language. If you like to dig in first, the USDA Loans Guide walks through eligibility, maps, and how USDA compares to other low-down-payment options.

NMLS #277954 • Success Mortgage Partners • USDA Guaranteed Rural Housing loans are backed by the U.S. Department of Agriculture and offered by approved lenders. Income, location, and credit requirements apply.

Coaching insight

Who USDA loans are built to help.

USDA loans exist to make homeownership more accessible for low-to-moderate income households buying in qualifying rural and small-town communities. The program pairs $0 down with guidelines tailored to these areas.

First-time & repeat buyers

Buyers who meet USDA income limits and want a primary residence in an eligible area — even if this isn’t their first home.

Households watching cash to close

Families who can comfortably make a monthly payment but want to conserve savings with 0% down financing.

Small-town & rural buyers

Buyers who either already live in or are open to living in a USDA-eligible rural or small-town area as defined by USDA.

How it works

$0 down, credit, and the USDA guarantee fee.

USDA loans pair no-down-payment options with income and location limits. Instead of traditional mortgage insurance, the program uses a guarantee fee structure that can often be financed into the loan.

  • 0% down payment: Eligible buyers can finance up to 100% of the appraised value.
  • Credit: Many buyers qualify with a credit score of around 640 or higher.
  • Upfront guarantee fee: Typically 1.00% of the loan amount, often financed into the loan.
  • Annual fee: A small annual fee, collected monthly, that often compares favorably to other low-down-payment options.

Good fit signals

  • Household income within USDA limits for your county and family size
  • Looking to buy a primary residence in an eligible area
  • Comfortable with a 30-year fixed payment
  • Focused on minimizing upfront cash while keeping payments predictable

Exact income limits, fees, and credit expectations are set by USDA and individual lenders. We’ll walk through how they apply to you before you make decisions.

Property & occupancy

What kinds of homes work with USDA?

USDA loans focus on homes that are safe, modest, and owner-occupied. Within that, there is flexibility in property type — including some manufactured homes.

  • Primary residence required: USDA is for owner-occupied homes, not second homes or investment-only purchases.
  • Modest single-family homes: No income-producing properties or significant commercial use.
  • Property condition: The home must be safe, sound, sanitary, and meet minimum property standards.
  • Manufactured homes: Allowed when they meet HUD standards, age, and foundation requirements.

Location & eligibility basics

  • The property must be in a USDA-eligible rural or small-town area.
  • Eligibility is based on the property address, not where you currently live.
  • Many “edge of town” and suburban-feeling areas qualify even if they don’t feel rural.
  • We’ll help you check both specific addresses and broader target neighborhoods.

As part of your pre-approval, we’ll confirm property eligibility early so you’re only shopping homes that fit the program.

Income & household

Income limits and who gets counted.

USDA loans are targeted to low-to-moderate income families. That means there are county-specific income caps based on household size.

  • Household income is generally capped at 115% of area median income (AMI).
  • All adult household members’ income counts, even if they’re not on the loan.
  • Income is evaluated using annualized, adjusted income after eligible deductions.
  • Limits vary by county and family size — many buyers qualify who assume they won’t.

Closing costs & strategies

Even with $0 down, you’ll still have closing costs and prepaid items. The good news: USDA allows several ways to help manage cash to close.

  • Seller concessions can help cover closing costs, within program limits.
  • Lender credits may be available in exchange for a slightly higher rate.
  • If the home appraises above the purchase price, some costs may be able to be rolled into the loan.
  • Gift funds and certain grants can be used when they meet program rules.

We’ll map out realistic cash-to-close estimates and show you side-by-side ways to structure your offer and loan.

USDA borrower checklist

  • Most recent 30 days of pay stubs (or income documentation if self-employed)
  • W-2s and/or 1099s for the last 2 years
  • Federal tax returns, if requested based on your income type
  • 2 months of bank or asset statements for reserves and cash flow
  • Government-issued ID and Social Security card (or applicable documentation)
  • List of all household members and their income sources

Helpful “nice-to-have” items

  • Rough budget for monthly payment and cash you’re comfortable bringing to closing
  • Addresses of homes or neighborhoods you’re interested in
  • Documentation for any recent large deposits
  • Letters of explanation for prior credit events, if needed
  • Any information on gifts or grant funds you may use toward costs
Next steps

Maps, income limits, and numbers.

Want one rough payment and a clearer lane forward? Start with the guides that fit your situation, then run quick numbers in the mortgage calculators.

USDA Loans Guide

Get the full walkthrough on eligibility maps, income limits, property rules, and how USDA compares to other $0 and low-down options.

Read the guide

FHA Loans Guide

See when FHA might make sense if a property or income is just outside USDA guidelines but you still need a flexible path in.

Read the guide

Down Payment Options & Assistance

Explore how gift funds, concessions, and assistance can work alongside USDA to keep cash to close manageable.

Read the guide

Mortgage Calculators

Estimate rough USDA-style payments, compare price points, and see how taxes and insurance impact the budget.

Open calculators

Quick answers

USDA loan FAQs.

A quick snapshot of the questions that come up most often when we talk about USDA loans, $0 down options, income limits, and which areas qualify.

Yes. Eligible USDA buyers can finance up to 100% of the appraised value of the home, which means no down payment is required. You’ll still have closing costs and prepaid items, but there are options to help manage those as well.

USDA defines eligible areas based on population and rural characteristics. Many small towns, rural communities, and even some “edge of town” neighborhoods just outside major cities qualify. We’ll help you check specific addresses and broader target areas.

Many USDA buyers qualify with a credit score of around 640 or higher. That said, we look at the whole picture — income stability, payment history, and existing debts. If you’re close to that range, we can review your credit and outline next steps.

No. USDA loans are not limited to first-time buyers. You can use a USDA loan as long as you meet the income, property, and occupancy guidelines and the home will be your primary residence.

In some cases, yes. If the home appraises for more than the purchase price, the difference can sometimes be used to help cover closing costs. Seller credits and lender credits can also be used, within program limits. We’ll show you what that looks like with real numbers.

Yes — USDA can allow manufactured homes that meet HUD standards, age and foundation requirements, and all USDA property guidelines. We’ll verify those details early in the process so there are no surprises.

Yes. USDA loans have household income limits that vary by county and family size and are generally set at 115% of the area median income (AMI). We’ll help you calculate your household income and compare it to the current limits for your area.

Ready to see if a USDA loan fits your next move?

Share a bit about your household, target areas, and budget. We’ll confirm USDA income and location eligibility, estimate payments with $0 down, and compare USDA to other options so you can choose the path that supports both today’s move and tomorrow’s plans. If you’d rather read first, you can always start with the USDA Loans Guide for a deeper walkthrough.

USDA Guaranteed Rural Housing loans are backed by the U.S. Department of Agriculture and offered by approved lenders. Programs, income limits, eligible areas, and terms are subject to change without notice. Eligibility and underwriting requirements vary by USDA rules, lender, and location. Not a commitment to lend. All loans subject to credit and collateral approval. All loans subject to approval. Equal Housing Lender.