You can make country roads your home. A USDA loan delivers 100% financing with no down payment — and it's not just for farms. Many small towns and suburban areas qualify.
What Is a USDA Loan?
A USDA loan is a government-backed, no-down-payment home loan that lets low- to moderate-income households get up to 100% financing for a primary residence. Backed by the U.S. Department of Agriculture's Rural Development program, it exists to promote affordable homeownership in rural and suburban communities.
USDA Loan Benefits
✓Up to 100% financing — no down payment required
✓Fixed-rate 30-year mortgage — predictable payments
✓Seller can pay up to 6% of closing costs
✓No maximum purchase price
✓Certain repairs & improvements may be financed
✓Streamline refinance available
Who It's For
✓First-time homebuyers in eligible areas
✓Low- to moderate-income households
✓Borrowers with credit challenges
✓Small-town & suburban buyers — not just rural
✓Repeat buyers — not first-timer-only
Eligibility at a Glance
- Household income up to 115% of area median
- Primary residence occupancy required
- U.S. citizen, non-citizen national, or qualified alien
- Property in a USDA-eligible rural/suburban area
- Credit history showing willingness to repay
- No current delinquencies on non-tax federal debt
Pros & Cons
Pros
- 100% financing — no down payment
- Fixed-rate 30-year terms
- Seller can pay up to 6% of closing costs
- No maximum purchase price
Cons
- Income limits apply
- Property must be in an eligible area
- Primary residence only
Jimmy's tip: Don't assume your target home is 'too close to the city' — the USDA eligibility map covers far more than most people think. Send me the address and I'll check it in minutes.
USDA Loan FAQs
Straight answers to the questions borrowers ask most. Your loan officer is always your best resource for your specific situation.
What is a USDA loan?
A USDA loan is a government-backed, no-down-payment mortgage that helps low- to moderate-income households get up to 100% financing for a primary residence in an eligible rural or suburban area.
Do USDA loans require a down payment?
No. USDA loans offer up to 100% financing — no down payment required (up to the home's appraised value).
Who is eligible for a USDA loan?
Household income cannot exceed 115% of the area median income, you must occupy the home as your primary residence, and you must be a U.S. citizen, U.S. non-citizen national, or qualified alien. The property must also be in a USDA-eligible area.
Is a USDA loan only for first-time homebuyers?
No. The program is not limited to first-time homebuyers — repeat buyers can qualify too.
What areas qualify for USDA financing?
About 91% of the U.S. is within the USDA mortgage boundary — including many small towns and even some areas close to cities. It's worth checking your target property even if you don't consider it 'rural.'
Can I refinance a USDA loan?
Yes. If rates drop, you can refinance with a USDA Rural Streamline Refinance loan, and USDA Cash-Out options are also available.
CrossCountry Mortgage, LLC · NMLS #1444822 · Equal Housing Lender
This page is for informational purposes and is not a commitment to lend. Program availability, guidelines, rates, and terms vary and are subject to change. Your rate may vary. Terms apply.