USDA HOME Loans

A USDA home loan, also referred to as a Rural Development loan, is a government-backed mortgage program backed by the U.S. Department of Agriculture (USDA) with a focus on bolstering rural housing markets. What makes USDA loans attractive is that they offer an affordable financing solution for homebuyers and those seeking to buy a home or refinance in rural areas with a $0 down payment.  

USDA home loans offer flexible options as either Fixed Rate or Adjustable Rate mortgages (ARM). You may qualify with less than perfect credit. Buying a home with little or no down payment can provide opportunities for buyers that otherwise may not be able to become homeowners. Fortunately for today’s buyers, there are a few programs that can help them qualify for a mortgage with a very small down payment. 

Discover the key to homeownership with a USDA home loan. USDA loans offer eligible homebuyers in designated rural areas a 100% financing option. This means you can take the first step towards owning your dream home without a down payment. Our team of team of USDA home loan experts is here to guide you through the simple and affordable USDA home loan process. Contact us today to see if you qualify and secure the home you've always wanted.

USDA Income Limits 2024

As of June 2024, most of the rural areas USDA guaranteed loans cover have a standard limit of $398,600. Higher cost counties have higher limits between $431,400 and $919,800.  

USDA loan limits by county may be higher to account for cost of living.  Request a quote to see if you qualify. 

2024 USDA Home Loan Qualifications

In the past, USDA Loans were often call "farmers loans" but times have changed. Almost anyone outside of a major metropolitan area looking to purchase a home can qualify for a USDA loan. Eligibility varies based on area, your income, credit history, and number of dependents claimed so it's important that you call and speak with one of our licensed home loan experts to see if you qualify.

  • No down payment required
  • FICO credit score of 580 or higher
  • Two year history for employment is required
  • Household income limits apply and are based on location
  • First-time homebuyers eligible 
  • Manufactured homes permitted  
  • Must be an eligible property. To find out if a property qualifies for this loan, visit the USDA Home Loan Eligibility Map
  • Gift/grant funds and Mortgage Credit Certificates (MCC) allowed

Advantages of USDA Loans

  • Purchase your home with as little as 0% down payment
  • Serves low to moderate income borrowers
  • Lower interest rates compared to Conventional loans
  • Gift funds can be used at closing
  • Loan is Guaranteed by the Department of Rural Development
  • A high income is not necessary to qualify for a USDA mortgage
  • Refinance up to 100% of your primary home’s value
  • Option to roll your closing costs into your loan
  • Terms up to 30 years
  • 5-year adjustable rate mortgage available
  • No monthly PMI (Private Mortgage Insurance)
  • Pay your mortgage off at any time without pre-payment penalties
  • No max loan amount. Unlike most conventional loans and FHA loans, USDA loans have no maximum purchase price

No Down Payment

There are just two primary types of home loans that provide zero-down financing to eligible candidates: USDA and VA home loans. If you don't meet the military service requirements for VA loans, a USDA loan could be a suitable alternative. In this case, your savings goal will be focused on covering the closing costs.

You may also be eligible for one of our down payment assistance program.

Why a USDA Loan?

There are many benefits, including: no down payment required; borrowers who qualify for a USDA home loan have the flexibility to pay nothing out of pocket for a down payment.  Additionally, the USDA Loan allows borrowers to use a gift or grant to go toward their mortgage.

This program helps lenders work with low and moderate income households living in rural areas to make homeownership a reality. Providing affordable homeownership opportunities promotes prosperity, which in turn creates thriving communities and improves the quality of life in rural areas. 

If coming up with a down payment is holding you back from your dreams of home ownership, the USDA home loan may be just the answer you are looking for.

Apply Online for USDA home loan

American Home Lending USA, LLC has been apart of the USDA lender network and participating in the USDA Single Family Housing Guaranteed Loan Program since 2008.

To start the USDA mortgage application process, you can apply online, contact us, or visit your nearest branch location in Edwardsville, IL, St. Louis, MO, Saltillo, MS, Hattiesburg, MS, Mobile, AL, or Clearwater, FL.

USDA Loans for First Time Homebuyers 

First-time homebuyers, if you're seeking an affordable and accessible path to homeownership, a USDA home loan could be your ideal choice. With no down payment required and competitive interest rates, USDA loans make it easier to purchase your first home. These loans also offer flexibility with credit requirements and the option to include closing costs in the loan, reducing the upfront financial burden. Designed for eligible rural and suburban areas, USDA loans provide a quieter and more affordable living environment, perfect for those new to homeownership. Additionally, the assurance of being backed by the U.S. Department of Agriculture adds an extra layer of confidence. The lower monthly mortgage insurance and potential for 100% financing make USDA loans a smart option for first-time buyers looking to fulfill their dream of owning a home.

USDA Rural Development Loan Map

While USDA loans are commonly associated with rural housing, they are not limited to countryside living or farmland purchases. Surprisingly, a significant portion of the United States falls within the USDA-eligible zones.

According to data from the Housing Assistance Council, a staggering 97% of the country's land falls within USDA-eligible boundaries. These areas are home to approximately 109 million Americans, which accounts for roughly one-third of the nation's total population.

It's important to note that residents in major cities and densely populated suburbs may not qualify for these loans. However, those residing in adjacent towns and smaller cities could be eligible. The USDA considers areas with a population of 35,000 or less as 'rural.'

To easily check USDA property eligibility, you can use the USDA eligibility map tool.  Simply enter the property address, hit enter, and it will indicate whether the home qualifies for USDA financing. If the property falls within a shaded area on the USDA eligibility map, it is currently not eligible.