USDA Loans
Low or no down, just outside the city.
USDA loans offer low or no down payment options for buyers with moderate incomes in eligible rural and suburban areas. Many towns just outside major metro areas qualify.
- Low or no down payment
- Lower monthly fee than FHA mortgage insurance
- Fixed-rate options
No credit pull and no obligation. Prefer to talk? Call or text (949) 910-3943.
At a glance
- Down payment
- $0
- Guarantee fee
- Upfront and annual, set by USDA
- Income limit
- Up to 115% of area median
- Where
- Primary home in an eligible area
Why USDA
The other zero-down loan
You do not need to be a veteran, a farmer or a first-time buyer. If the home and your household income fit, USDA is worth a close look.
Low or no down payment
Eligible buyers may be able to finance up to the appraised value.
Lower monthly cost
The annual fee set by USDA is typically lower than FHA mortgage insurance.
Flexible credit
USDA sets no hard minimum score. Many lenders look for 640 for streamlined approval, and lower scores can still be reviewed.
Seller can pay your costs
Sellers can contribute up to 6% of the price toward your closing costs.
Closing costs can be financed
If the home appraises for more than the price, some closing costs can be rolled into the loan.
More places qualify than you think
Many small towns and outlying suburbs are eligible. I can check any address in seconds.
Compare
USDA vs. FHA vs. conventional
How USDA compares with the other low-down-payment loans.
| USDA | FHA | Conventional | |
|---|---|---|---|
| Minimum down payment | None | Low | Low |
| Upfront fee | Guarantee fee, usually financed | Upfront premium, usually financed | None |
| Ongoing fee | Annual fee, typically lower than FHA | Annual premium | Mortgage insurance with a smaller down payment |
| Income limit | Yes, 115% of area median | None | None on standard loans |
| Location | Eligible rural and suburban areas | Anywhere | Anywhere |
Typical program terms. Your rate and fees depend on your full profile.
Want to see what a zero-down payment looks like?
Eligibility
The two USDA tests
A USDA loan depends on where the home is and what your household earns. I check both before you start shopping.
| Test | What it means | How I check it |
|---|---|---|
| Property | The home must be in a USDA-eligible area | I look up the address on the USDA eligibility map |
| Income | Total household income at or below 115% of the area median | Based on your county and household size |
Eligible areas and income limits are set by the USDA and updated periodically.
Qualifying
Do you qualify?
Typical requirements
- Household income within the USDA limit for your county
- A home in a USDA-eligible area
- You will live in the home as your primary residence
- A history of paying your obligations on time, typically a 640 score for streamlined approval
- U.S. citizenship or eligible non-citizen status
What you will need
- Recent pay stubs and two years of W-2s
- Two years of tax returns
- Two months of bank statements
- Income details for every adult in the household
- A government-issued photo ID
The process
From first call to keys in hand
Tell me your goals
A short form or a ten-minute call. No credit pull to get started.
Eligibility and pre-approval
I confirm the area and income limits, review your numbers and issue a pre-approval you can shop with.
Find the home
Make an offer with confidence. I will call the listing agent to back it up if that helps you win.
Approval to closing
After underwriting, the USDA gives its own sign-off before closing. I build that time into your schedule.
Common questions
USDA loan questions, answered
Is a USDA loan only for farms?
No. It is for ordinary single-family homes in eligible areas. Income-producing farms do not qualify.
How do I know if an area is eligible?
Eligibility is set address by address. Dense urban areas generally do not qualify, while many small towns and outlying suburbs do. Send me an address and I will check it.
Is there a maximum loan amount?
There is no set loan limit. How much you can borrow depends on your income, your debts and the USDA income limit for your area.
Does a USDA loan take longer?
A little. After the lender approves the file, the USDA reviews it too, so I plan for that extra step up front.
Can I refinance a USDA loan?
Yes. USDA offers streamlined refinance options for existing USDA borrowers.
Wondering if your area qualifies?
Send me a city, ZIP code or address and I will tell you whether it is USDA-eligible and what your payment could look like.
Not affiliated with or endorsed by the USDA or any government agency. This is general information, not a loan offer, rate quote or commitment to lend. Program terms, fees and eligibility can change and depend on your credit, income, property and lender guidelines. Mack Davidson, NMLS #1006831, CA DRE #02086053, E Mortgage Capital, Inc., NMLS #1416824. Equal Housing Opportunity.