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USDA Loans: Affordable Home Financing for Rural Living

Buy a home with 0% down. USDA loans make it possible.

If you're buying in a rural area and meet income guidelines, a USDA loan could be your smartest path to homeownership. These government-backed loans offer low interest rates, no down payment requirements, and flexible credit guidelines—designed to make owning a home more affordable for families across the country.

What is a USDA loan?

A USDA loan is a government-backed mortgage offered through the U.S. Department of Agriculture’s Rural Development program. It’s designed to help low-to-moderate income homebuyers purchase a home in USDA-designated rural and suburban areas.

Do I need to buy farmland to qualify?

No. Not all rural areas are farmland. The USDA defines rural areas as communities with fewer than 50,000 people, which aren’t connected to or near metro areas. You can even qualify for a USDA loan living within about an hour’s drive of a major city—so don’t rule it out just because you’re near urban centers.

Not sure if your property qualifies as rural?

Use the USDA eligibility map to check property eligibility by address.

Benefits of USDA Loans

0% down payment required – You can buy a home with no money down.

Competitive interest rates – Typically lower than conventional loan rates.

Lower monthly mortgage costs – USDA loans come with reduced mortgage insurance compared to other loans.

Credit flexibility – You may qualify with a score as low as 640—and in some cases, even lower.

Financing for repairs – Certain USDA loans can be used for home improvements and repairs.

Are USDA loans hard to qualify for?

While USDA loans are designed to help low- and moderate-income borrowers, they do have strict location and income requirements. They are often the “last stop” loan option after other loans aren’t available. However, their flexible credit standards and zero down payment requirement make them an excellent choice for many borrowers.

Who Qualifies for a USDA Loan?

You may be eligible if you:

Plan to buy a primary residence in a USDA-designated rural or suburban area
Have low-to-moderate income (typically up to 115% of your area’s median income)
Are a U.S. citizen or permanent resident
Have a credit score of 640 or higher (lower scores may still qualify)
Have a stable income and manageable debt
We’ll walk you through the guidelines and help you see what options are available based on your income, location, and credit.