USDA Home Loans


USDA Home Loans

USDA Home Loans are USDA Mortgages for rural areas. Rural home loans are available through guaranteed or direct loans and do not have a cap limit for acreage. The USDA Single Family Housing Guaranteed Loan Program is available for purchasing, building, improving, and relocating dwellings in eligible rural areas. The loans are available for primary residence purchases for low to moderate-income households. Applicants must meet USDA Home Loan income eligibility requirements in addition to the location being in an approved rural area. The USDA Home Loan terms of USDA Section 505 Guaranteed Loans are thirty-year fixed-rate mortgages. Interest rates vary among individual lenders so shopping around for information and comparing rates can be helpful to find the best rates. The program does not have credit score requirements, however, applicants must demonstrate the ability to manage debt. Because ninety percent of the loan value is insured by the government. The guaranteed rural home loans by USDA generally have zero down payment options for borrowers.

Home Loan Credit Score Requirements

The USDA Single Family Housing Guaranteed Loan Program does not have credit score requirements set by the USDA, however, requirements may be set and vary by approved lenders, often times ranging anywhere from 620 to 680.  It  is suggested to inquire with USDA-approved lenders as to what the credit score requirements are for the USDA Single Family Guaranteed Home Loan Program

USDA Approved Lenders

USDA Approved Lenders are lenders that are approved to offer USDA Rural Home Loans. Not all lenders offer these loans, however many do. It is suggested to inquire with lenders, and then to compare multiple USDA approved lenders as many will have different credit score requirements and different interest rates available.  Prior to making purchase offers, buyers are advised to check the USDA Guaranteed Loan Area Eligibility to ensure the home is located in an approved rural area.  Getting a mortgage prequalification letter is of course highly advised to let sellers know buyers are ready, willing, and able to buy.

Home Loan Terms

Home Loan Terms are available in a 30-year fixed-rate mortgage loan. Fixed Rate Mortgages benefit homeowners by offering security in knowing what the monthly mortgage payment will be over the full term of the loan and can be helpful for setting monthly household budgets.

Home Loan Interest Rates

Mortgage Loan Interest rates for the USDA Single Family Guaranteed Mortgage Loan programs vary be USDA Approved Lenders.

USDA Income Eligibility Requirements

Guaranteed Single Family Home Loans are available to low to moderate-income households in approved rural areas. Click here to check income eligibility requirements for the location of interest. 

USDA Single Family Guaranteed Home Loans –  Section 502 Guaranteed Loan Program

  • Zero Down Payment
  • 30 Year Fixed Rate Term
  • No Credit Score Requirements but subject to requirements which vary amongst USDA Approved Lenders
  • Interest Rates Set and Vary by USDA Approved Lenders
  • Available for Primary Residence Purchase
  • No Acreage Cap Limit
  • Available for Low to Moderate Income Households that meet Income Eligibility Requirements
  • Available in rural areas that are USDA Eligible Area Approved