USDA loans

What it is

USDA says the program offers 100% financing, so no down payment is required. Loans are 30-year fixed-rate. There is no minimum credit score set by USDA, but the lender will review credit, income and debts.

Who can use one

• The home must be in an area USDA has marked as eligible. Check an address on USDA's own map (link below). Some places that feel like suburbs are eligible, and some small towns are not.
• You must live in the home as your primary residence.
• Household income cannot be more than 115% of the median household income for the area, according to USDA. USDA has an income eligibility tool (link below).
• Applicants must be a U.S. citizen, U.S. non-citizen national or qualified alien.

What it costs

USDA charges an upfront guarantee fee and an annual fee. For loans with a commitment date from October 1, 2026 to September 30, 2027, USDA's published fees are 1.00% upfront and 0.35% annual. The annual fee applies for the life of the loan. You can add the upfront fee to the loan or pay it at closing. USDA sets fees each year, so confirm the current fees with your lender.

Questions to ask a lender

• Is this address in a USDA-eligible area?
• Is my household income under the USDA limit for this area?
• What are the upfront and annual fees on my loan?
• What are the rate, points and closing costs on my Loan Estimate?

Sources

• USDA: Single Family Housing Guaranteed Loan Program
• USDA: check a property address
• USDA: check income eligibility
• USDA Rural Development: FY2027 fee announcement

* General information only, not a loan offer, a commitment to lend or advice. Program rules, limits and fees are set by the agencies above and can change. Eligibility, rates and approval depend on credit, income, the property and the lender, and are not assured. This site is not affiliated with or endorsed by USDA or any government agency. Sinjo Thomas, NMLS #2680792, C2 Financial Corporation, NMLS #135622. See disclosures.

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