USDA home loans allow buyers in rural neighborhoods to purchase a home with no money down and save on mortgage insurance (PMI) 


A USDA loan is a great option to buy a home as a first time home buyer. The property must be in a qualified rural area and the loan is designed for borrowers in lower income brackets. 



  • You Can Qualify With a Lower Credit Score
  • You Can Buy a Home With No Money Down
  • Your Fees will be Less Than an FHA Mortgage
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USDA loans, also known as rural development loans, are backed by the U.S. Department of Agriculture and provide affordable mortgage options for homes in rural areas.

If you're buying a home, you can get a USDA loan as a 30-year fixed-rate mortgage. If you already have a USDA loan, you can refinance it into a new USDA loan; however, you can't refinance with a USDA loan if you currently have a different loan type.


To get a USDA loan you must meet these qualifications;


  • Your debt to income ratio must be low enough to qualify
  • The property must be in an eligible rural area
  • The property must not be commercial property
  • Your household income must not exceed 115% of the area median family income

USDA loans require a upfront guarantee fee and an annual guarantee fee, similar to upfront mortgage insurance and monthly mortgage insurance on FHA and Conventional loans. These guarantee fees are lower than insurance premiums for FHA and will save you money on your monthly mortgage payment. The guarantee fees are also lower than a Conventional loan's mortgage insurance.