Buy a home outside the city limits with USDA

Finance your dream home outside city limits with competitive rates and no down payment

What is a USDA Loan?

With a USDA loan, you can buy a home in rural areas without a down payment. It offers benefits like low mortgage insurance and flexible credit requirements, making it an affordable option for eligible buyers.

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USDA Loan options

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100% financing with no down payment

Lower monthly mortgage insurance

Income-based loan eligibility

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Do you qualify for a USDA Loan?

Understanding if you qualify for a USDA loan is the first step toward homeownership in eligible rural and suburban areas.

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Property requirements

The property must be located in a USDA-eligible rural or suburban area. You can check eligibility on the USDA website. The home must be your primary residence and meet USDA property standards.

Credit requirements

USDA loan offers flexible credit options. A score of 640 or higher streamlines processing. Borrowers with lower scores may still qualify with additional documentation and financial strengths like stable employment, low debt ratio, or savings.

Financial requirements

Your household income must not exceed 115% of the area median income for your location. Typically, your debt-to-income ratio should not exceed 41%, though exceptions may be possible with compensating factors.

USDA Loan benefits

USDA loans offer unique advantages for rural and suburban homebuyers.

Zero down payment

Lower mortgage insurance

Competitive interest rates

Rural property financing

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Many people told us we couldn’t by a house but be my neighbor made it happen. If you want to use your VA loan this is definitely the team you should work with!!! We are truly greatfull!!!

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Despite all the set backs and ridiculous circumstance outside of BMN, we had the BEST experience with this brokerage!

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I appreciate the work and time the team at Be My Neighbor put in. We are so happy with our new home, and we look forward to enjoying Sunny Florida!

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The loan experts you deserve

USDA loan experts helping rural homebuyers achieve affordable homeownership. We navigate government-backed options with lower fees and zero down payment requirements to find your perfect rural property financing.

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FAQ’s

Find answers to common questions about USDA loans and the application process.

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What is a USDA loan?

A USDA loan is a government-backed mortgage offered through the U.S. Department of Agriculture to help eligible buyers purchase homes in rural and suburban areas. It offers 100% financing with no down payment required.

Who is eligible for a USDA loan?

Eligibility for a USDA loan depends on your income, location, and whether the property you’re purchasing is in an eligible rural or suburban area. Generally, you must meet certain income limits and the home must be your primary residence. USDA loans are available to both first-time homebuyers and repeat buyers.

Do I need a down payment for a USDA loan?

No, one of the key benefits of a USDA loan is that it requires no down payment. This makes it an excellent option for borrowers who may not have enough savings for a traditional down payment.

What are the income limits for a USDA loan?

USDA loan income limits vary by county and household size. To qualify for a USDA loan, your household income must be below the limit set for your area, which is typically around 115% of the median income for that region.

What is the interest rate for a USDA loan?

USDA loans offer competitive interest rates, which are often lower than those for conventional loans. The exact rate you will receive depends on your financial profile, including your credit score, debt-to-income ratio, and the lender’s current rates.

Do I need private mortgage insurance (PMI) for a USDA loan?

While USDA loans do not require traditional private mortgage insurance (PMI), they do have a similar type of insurance called Mortgage Insurance Premium (MIP). There is an upfront MIP fee and an annual MIP fee, which is typically lower than the cost of PMI for conventional loans.

Are there loan limits for a USDA loan?

No, USDA loans do not have a specific loan limit. However, the size of the loan is determined by your income, the area’s housing costs, and your ability to repay the loan. The loan must be for a property that meets USDA guidelines and is located in an eligible rural area.

What types of properties can I purchase with a USDA loan?

USDA loans can be used to purchase single-family homes, townhouses, and certain types of manufactured homes. The property must be located in an eligible rural or suburban area and must be your primary residence.

How long does it take to get approved for a USDA loan?

The approval process for a USDA loan can take between 30 to 60 days, depending on the complexity of the loan and the lender’s requirements. USDA loans often involve additional paperwork, as they require verification of income and property eligibility.

Can I refinance with a USDA loan?

Yes, USDA loans offer refinancing options through programs like the USDA Streamline Refinance, which allows existing USDA loan holders to refinance with minimal paperwork and no appraisal required. The goal is to help reduce the borrower’s monthly payments.