USDA Home Loans


USDA Home Loans allow 100% financing when purchasing or refinancing a home in a USDA-designated rural area. These home loans are guaranteed by the United States Department of Agriculture and eligibility is based primarily on income limitations and the property’s location. USDA Home Loans require MIP regardless of LTV and also have an Up Front Funding Fee of 2% that can be rolled into the loan amount. Check out the USDA Payment Calculator to see the impact of the Funding Fee.

Let’s review some USDA specifics:

  • Purchase or streamline refinances are available – Must be your primary residence.
  • Minimum 640 credit score is required
  • Income Limitations apply – all working household member’s income must be included for eligibility (this includes spouses, kids over the age of 18, and anyone else occupying the property over the age of 18 and working).
  • The property must be in a USDA Rural Development housing area. Check out USDA’s Eligibility Map to see if your home qualifies.
  • Maximum 6% Seller Concessions are allowed