What is a USDA Loan?

Without over-complicating things, a USDA loan is very similar to a VA loan, but with different qualification requirements.

The Section 502 Guaranteed Loan Program assists approved lenders in providing low- and moderate-income households the opportunity to own adequate, modest, decent, safe and sanitary dwellings as their primary residence in eligible rural areas. Eligible applicants may purchase, build, rehabilitate, improve or relocate a dwelling in an eligible rural area with 100% financing. The program provides a 90% loan note guarantee to approved lenders in order to reduce the risk of extending 100% loans to eligible rural homebuyers. Most importantly, what does this mean for qualified borrowers? No money down for those who qualify!



USDA Loan Qualifications

Applicants must:

What is an eligible rural area?

Utilizing this USDA’s Eligibility Site you can enter a specific address for determination or just search the map to review general eligible areas.

Why does Rural Development do this?

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.

Wondering how to get started? Our team is here to help! Get in touch today to learn more about qualifying and applying for a USDA Loan. We’re always happy to help!

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