A USDA loan is a mortgage guaranteed by the U.S. Department of Agriculture for homes in eligible rural and many suburban areas. The program requires no down payment, and its mortgage insurance equivalent — a 1% upfront guarantee fee plus a 0.35% annual fee — is among the least expensive of any low-down-payment program. The catch is eligibility: both the home’s location and your household income have to qualify.
$0
Down payment required by the program for eligible buyers
115%
Of your area’s median income — the household income cap for eligibility
1%
One-time upfront guarantee fee, typically rolled into the loan
0.35%
Annual fee, paid monthly — well below most other programs’ insurance costs
Figures reflect current USDA Rural Development program rules as of August 12, 2026. Location and income eligibility are address- and county-specific — we’ll check yours in minutes.
YOUR EUREKA MOMENT
The map surprise: “rural” covers far more of our licensed states than most buyers expect. Discovering your town qualifies — that’s a Eureka moment.
Run your real numbers →The kitchen-table version: if you’re buying outside a major city center and your household income is at or below your area’s cap, USDA may be the least expensive way into a home that exists.
The full picture: “rural” is more generous than most people assume — large swaths of suburban Oregon, Washington, Texas, Tennessee, and Florida qualify, including towns many buyers would never call rural. Eligibility is checked by exact address on USDA’s maps. Income eligibility counts your whole household (not just borrowers on the loan) against 115% of the area median, adjusted for household size. The home must be your primary residence.
When the address and income both qualify, USDA usually costs less than FHA — no down payment required versus FHA’s 3.5%, and a 0.35% annual fee versus FHA’s 0.55%. FHA wins when the home or income doesn’t fit USDA’s boxes, or when its credit flexibility matters. This is exactly the comparison a brokerage exists to run — we price both and show you the real difference for your address.
Probably more likely than you think — USDA’s definition covers most of the country’s land area and plenty of suburbs. Eligibility is checked by exact address on USDA’s official maps, and boundaries occasionally shift. Send us an address and we’ll confirm it in minutes, free.
Your total household income — including members not on the loan — must be at or below 115% of your area’s median income, adjusted for household size. The caps are county-specific and higher than many people expect, especially for larger households. We’ll look up your county’s exact number with you.
The program requires no down payment — genuinely. You’ll still have closing costs, the 1% upfront guarantee fee (nearly always rolled into the loan rather than paid in cash), and a 0.35% annual fee paid monthly. Even with those, USDA is often the least expensive low-down program available where it applies.
USDA itself sets no hard minimum; lenders commonly want 580–640, and files at 640+ can use streamlined automated approval. Because we broker multiple lenders, a score that stops one lender doesn’t end the conversation.
No — USDA is strictly for primary residences in eligible areas. If you’re shopping for a rental or vacation property, our conventional and non-QM programs are the right toolbox, and we’ll point you there honestly.
Two quick checks — the address and the income cap — tell us if USDA is on the table. Then we price it against everything else you qualify for. No consultation fees, ever.
USDA loans are guaranteed by the U.S. Department of Agriculture Rural Development program and originated through approved private lenders. Eureka Mortgage Planning LLC is an independent mortgage brokerage — not a government agency, and not affiliated with or endorsed by the USDA. Property and income eligibility are determined by USDA; lender requirements and overlays apply. This page is educational and is not a commitment to lend; all loans are subject to underwriting and approval.
