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USDA Loan     

 

USDA Loans: 100% Financing for Rural & Suburban Homes

No Down Payment. Low Rates. Your Piece of the Countryside.

Dreaming of a home away from the city hustle but worried about the down payment? At LoanHouse, we offer USDA Rural Development Loans—one of the only remaining mortgage programs in the U.S. that allows you to buy a home with $0 down payment.

Backed by the U.S. Department of Agriculture, this program is designed to promote homeownership in less-populated areas, making it easier than ever for individuals and families to secure a home with affordable monthly payments.

The Benefits of a USDA Loan

The USDA loan is a "hidden gem" of the mortgage world, offering terms that are often even more favorable than FHA loans.

  • Zero Down Payment: Finance 100% of the purchase price of your home.

  • Low Interest Rates: USDA loans typically offer some of the lowest fixed interest rates available on the market.

  • Reduced Mortgage Insurance: The annual fee for USDA insurance is significantly lower than the PMI on a conventional loan or the MIP on an FHA loan.

  • Closing Costs: You can often use gift funds or seller concessions (up to 6%) to cover your closing costs, meaning you can truly get into a home with zero out-of-pocket cash.

  • Flexible Credit: While there is a focus on steady income, USDA guidelines are more forgiving than traditional bank loans.

USDA Loan Requirements

To qualify for a USDA loan, there are two primary "eligibility" checks: the Property and the Borrower.

Feature USDA Loan Details
Down Payment 0% (100% Financing)
Minimum Credit Score Typically 640+ (lower scores may require manual underwriting)
Property Location Must be in a USDA-eligible rural or suburban area
Income Limits Household income cannot exceed 115% of the area’s median income
Occupancy Must be your primary residence
Loan Term 30-Year Fixed Rate only

Is Your Area USDA Eligible?

A common misconception is that you have to buy a "farm" to use a USDA loan. In reality, many suburban neighborhoods on the outskirts of major metropolitan areas qualify as rural.

Pro-Tip: Our team at LoanHouse can run a quick "Address Check" to see if the specific home you are interested in qualifies for USDA financing.

Frequently Asked Questions

What is the income limit for a USDA loan?

Because this program is intended for moderate-to-low income households, the USDA sets income caps based on family size and the county where the home is located. At LoanHouse, we can calculate your "Qualifying Income" to see if you fall within these limits.

Is there a maximum purchase price?

The USDA does not set a specific maximum purchase price; instead, your maximum loan amount is determined by your debt-to-income ratio and your ability to repay the loan.

Can I use a USDA loan to buy a farm or a business?

No. This program is for residential properties only. While the home can be in a rural area, it cannot be a working commercial farm or have income-producing land features.

Do I have to pay an upfront fee?

The USDA charges a "Guarantee Fee" (currently 1% of the loan amount). However, most buyers choose to roll this fee into the loan balance, so it doesn't have to be paid in cash at closing.

Ready to Find Your Quiet Corner of the World?

Discover the power of 100% financing. Let LoanHouse help you find out if you and your dream home qualify for a USDA loan.