USDA Loans

What are USDA Loans?

USDA loans are government-backed mortgage loans provided by the U.S. Department of Agriculture (USDA) that help eligible low-to-moderate-income borrowers purchase homes in rural and suburban areas. These loans typically offer low interest rates, no down payment, and are designed to promote homeownership in areas that the USDA classifies as rural. USDA loans are a great option for buyers who may not qualify for conventional loans but still want to achieve homeownership.

Are USDA Loans Right for You?

USDA loans are designed for low-to-moderate income borrowers looking to purchase homes in eligible rural or suburban areas. These loans are ideal for first-time homebuyers or those who may not have a significant down payment saved. If you’re seeking affordable financing in a USDA-approved area, this loan could be a perfect fit for you.

Take the First Step Towards Homeownership

Eligibility Requirements

To qualify for a USDA loan, you must meet the following criteria:

Location

The property must be located in an eligible rural or suburban area as defined by the USDA.

Income Limitations

Your household income must fall within the USDA’s income limits for your area, which vary by region and household size.

Debt-to-Income Ratio

A typical maximum debt-to-income ratio of 41%, though higher ratios may be considered with compensating factors.

Credit Score

While the USDA does not have a minimum credit score requirement, most lenders prefer a score of at least 640.

Primary Residence

The home must be used as your primary residence.

USDA Loans

Numbers at a Glance

Here’s a quick overview of key numbers associated with this type of loans

Minimum Credit Score

640

Varies by lender

Down Payment

0%

Varies by loan type

Maximum DTI Ratio

41%

Varies by lender

Loan Term

30

Years to payoff the loan

Upfront Mortgage Insurance Premium (UFMIP)

1%

Of the loan amount

Annual Mortgage Insurance Premium (MIP)

0.35%

Of the loan amount, paid monthly

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We offer a variety of loan programs designed to meet the needs of every homebuyer.

USDA Home Loan is perfect for you?

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Our team is here to support you with personalized guidance.

Benefits of USDA Loans

No Down Payment

USDA loans do not require a down payment, making it easier for eligible buyers to purchase a home without needing to save for a large upfront payment.

Low Interest Rates

USDA loans offer competitive interest rates that can make monthly mortgage payments more affordable over the life of the loan.

Low Monthly Mortgage Insurance

The annual mortgage insurance premium for USDA loans is typically lower than other loan types, helping to keep your monthly payments manageable.

Accessible for Lower-Income Borrowers

USDA loans are specifically designed for low-to-moderate income borrowers, providing a path to homeownership that may not be available through conventional financing.

Not the Loan You're Looking for?

Check out other loan options

Ideal for borrowers with good credit, conventional loans offer competitive interest rates and flexible terms.

Available to veterans and active-duty service members, VA loans provide excellent terms with no down payment required.

Backed by the Federal Housing Administration, FHA loans are perfect for first-time homebuyers or those with less-than-perfect credit.

Designed for higher-priced homes, jumbo loans offer financing options above conventional loan limits.

ARMs start with a lower fixed interest rate for an initial period, then adjust periodically based on market conditions.

Allows homeowners 62+ to access home equity without monthly payments, repaid when the home is sold or vacated.

Pay only the interest on your mortgage for a set period, ideal for buyers who expect an increase in income or future refinancing.

Enjoy the security of a consistent interest rate and stable monthly payments for the life of your loan.

Flexible loans for borrowers who don’t meet standard lending criteria are ideal for those with irregular income.

Combines purchase and renovation costs into one loan, perfect for buyers looking to fix up a property.

You can always ask for advice from a mortgage loan expert.

Ready to start an application for a loan?

USDA Loans FAQ's

Can I use a USDA loan for a property that isn’t in a rural area?

USDA loans are limited to properties located in eligible rural or suburban areas. You can check the USDA’s property eligibility map to see if your desired home qualifies.

Do USDA loans require a down payment?

No, USDA loans do not require a down payment, allowing eligible buyers to finance 100% of the home’s purchase price.

What are the income limits for USDA loans?

Income limits vary by location and household size. The USDA sets these limits based on the median income of the area, and you can check the USDA’s website or consult with a lender to determine if your household income qualifies.

Find Your Perfect USDA Loan

First Finance Lending will guide you with expert advice and personalized service to start your homeownership journey with the perfect loan program.