USDA Loans
Affordable Financing for Rural & Suburban Living
Dreaming of a quieter home with more space to grow? A USDA loan could help turn that vision into reality by offering a true no-down-payment mortgage designed for eligible rural and suburban homebuyers.
A USDA loan is a government-backed home loan that allows qualified buyers to purchase a home with zero down payment, making homeownership more accessible without the upfront savings barrier. To qualify, the home must be located in a USDA-eligible area, and your household income must fall within local program limits.
For many buyers, this is one of the only zero-down home loan options available outside of military programs, combining affordability with flexible credit guidelines to help you move forward with confidence.
What is a USDA loan?
A USDA loan is a mortgage backed by the U.S. Department of Agriculture to encourage moderate-income buyers to purchase homes in eligible rural and suburban communities across the country.
The biggest draw: Qualified buyers can finance 100% of the purchase price. That means no down payment, no large cash reserves required to get started.
USDA loan features
- ✅Fixed rates
- ✅30-year terms
- ✅Mortgage insurance costs are typically lower than those of an FHA loan
Who is a USDA loan right for?
You may be a strong candidate for a USDA loan if you:
- Have a steady income but limited savings for a down payment
- Are buying a home outside a major metropolitan area
- Have a credit score in the mid-600s or higher
- Plan to use the home as your primary residence
- Are a U.S. citizen or a permanent resident
You do not need to be a first-time homebuyer to qualify. That said, many first-time buyers find USDA loans to be a game-changer when saving a full down payment feels out of reach.
USDA vs. FHA vs. Conventional loans
Here’s how a USDA loan stacks up against other common loan types:
| Feature | USDA | FHA | Conventional |
| Minimum down payment | 0% | 3.5% | 3%–20% |
| Mortgage insurance | Low annual fee (0.35%) | Higher MIP | PMI until 20% equity |
| Credit flexibility | Yes | Yes | Stricter |
| Location restriction | Eligible areas only | None | None |
| Income limit | Yes, by county | None | None |
USDA loans also include an upfront guarantee fee of 1% of the loan amount, which can be rolled into the loan so you don’t have to pay it out of pocket at closing.
How to get started with a USDA loan
- Connect with a GO Mortgage loan officer: Start by telling us a little about your goals. We’ll review your income, location, and credit to help you understand whether a USDA loan fits your situation and what your next best steps are.
- Get pre-qualified with confidence: We’ll guide you through the pre-qualification process, help you gather the right documents, and show you what price range makes sense—so you can shop knowing exactly where you stand.
- Find a USDA-eligible home: House hunting should feel exciting, not confusing. If you’re unsure whether a property qualifies, we can quickly check any address using the USDA eligibility map in just minutes.
- Apply, close, and get your keys: When you’re ready, we’ll walk you through your application, keep things moving through underwriting, and guide you all the way to closing day—so you can step into your new home with confidence.
Start your USDA loan today
A zero-down USDA loan could put homeownership within reach sooner than you expect.
With the right guidance, you can move forward confidently. That’s where GO Mortgage comes in. Our experienced loan officers understand the ins and outs of USDA programs and can quickly help you determine if you and the home you’re considering qualify.
Explore your USDA loan options today.
Get started with GO MortgageFAQ: USDA home loans
No, USDA loans are not limited to farms, ranches, or remote countryside properties. The USDA eligibility map designates qualifying areas based on population thresholds, and many of those areas are suburban neighborhoods located just outside major metropolitan areas. A community of 20,000 to 35,000 people can still qualify depending on its designation.
USDA loan income limits are typically set at 115% of the median household income for your area. These limits vary by county and household size, and they include the income of all household members—not just the borrower. This ensures the program supports moderate-income homebuyers in eligible areas.
A USDA loan does not have a strict minimum credit score, but most lenders prefer a score in the mid-600s for faster approval. Borrowers with lower scores may still qualify, depending on their overall financial profile, including income, debt, and payment history.
Yes, USDA loans require mortgage insurance in the form of two fees: a 1% upfront guarantee fee and a 0.35% annual fee. The upfront fee can be rolled into the loan, while the annual fee is divided into monthly payments, often costing less than traditional mortgage insurance.
Yes. Existing USDA loan holders may be eligible for a USDA streamline refinance, which is designed to lower your interest rate with reduced documentation requirements and no appraisal in most cases.
Disclosures
“USDA loans are backed by the U.S. Department of Agriculture and are available to eligible borrowers who meet specific income and location requirements. Not all applicants or properties will qualify. Your GO Mortgage loan officer can help you understand the guidelines and determine if a USDA loan is the right fit for you.”