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No down payment required
Low fixed rates
Mortgage insurance lower than FHA
Closing costs may be financed
Popular USDA Loan Topics
Mortgage Rates for USDA Loans
Your mortgage rate is an important factor in your overall home payment and family budget. Our company is built to offer lower mortgage rates which will help make your home more affordable.
On average, our mortgage rates are .326% lower than the national average. This equates to $23,836 in life of loan interest savings. See details on rate savings calculation here.
Program Highlights
Fixed Rates
Lower mortgage insurance
Primary Residence only
620 minimum credit score
No down payment required
Frequently Asked Questions
USDA loans provide 100% financing for borrowers purchasing homes in eligible rural areas.
What are the benefits of a USDA loan?
The property must be in a designated USDA eligible area and your household income must be below your area's USDA household income limit.
What are the special requirements for a USDA loan?
USDA interest rates can be lower than interest rates on other loan types because of their backing from USDA. Being a government insured loan protects lenders against default. USDA and FHA rates are typically very similar.
How do USDA interest rates compare to other loan options?
USDA mortgages have an upfront and annual Guarantee Fee, which is their equivalence of mortgage insurance. The upfront portion of the Guarantee Fee is paid one time, typically financed into your loan amount. The amount of the fee is calculated at 1% of the loan amount. The annual Guarantee Fee is 0.35% of the outstanding loan balance and is paid monthly as part of your mortgage payment.
What are the mortgage insurance costs for a USDA loan?
USDA Loans
Overview
USDA mortgages are loans that are backed or insured by the US Department of Agriculture (USDA). These loans are helpful for home buyers that wish to purchase homes in rural markets. USDA loans offer borrowers 100% financing at very competitive rates and terms.
USDA offers two loan programs to home buyers, the Guaranteed Loan Program and the Direct Program. The Guaranteed Program is offered through mortgage lenders and banks while the USDA issues loans through the Direct Program themselves. The following guidelines refer only to the Guaranteed Loan Program.
What can I use a USDA home loan for?
USDA loans can be used to purchase a primary residence. USDA loans are not used for purchases of investment properties or second homes. Those transaction types typically need conventional loans.
What is the minimum credit score I need for a USDA home loan?
You will need a credit score of 620 or higher for a USDA loan.
How much can I borrow with a USDA home loan?
USDA loans do not technically have set loan limits. However, they are unique in that they have household income limits (see below) which help serve as a limiting factor to how much you could borrow.
What are the income limits for a USDA loan?
USDA income limits will vary by location and household size, generally capping around 115% of the area's median income. In 2025, for most areas this will be $112,450 for a household of 1-4 members and $148,450 for a household of 5-8. All household income must be considered, even income from non-borrowing household members.
Do USDA loans require mortgage insurance?
USDA mortgages have an upfront and annual Guarantee Fee, which is their equivalence of mortgage insurance. The upfront portion of the Guarantee Fee is paid one-time, typically financed into your loan amount, and is calculated at 1% of the loan amount. The annual Guarantee Fee is 0.35% of the outstanding loan balance and is paid monthly as part of your mortgage payment.
What is the max Debt-to-Income Ratio (DTI) for a USDA home loan?
Your debt-to-income ratio is the percentage of your gross income that goes towards your monthly debts, including a proposed new mortgage payment. USDA loans typically require that your monthly mortgage payment not exceed 34% of your gross monthly income (housing ratio) and that your total monthly debts including the new house payment not exceed 41%.
Total debt-to-income ratios that exceed 41% may be approved with compensating factors, such as high credit scores and/or cash reserves.
What documentation do I need to provide for a USDA home loan?
USDA loans will require that you fully document your income and assets. Standard documentation requirements include recent paystubs, last two years of W2s, and the last two years of tax returns, if self-employed. You will also need to document all liquid assets used for down payment or closing costs.
What types of properties can I finance with a USDA home loan?
USDA loans can be used to finance one-unit single family residences, townhomes, FHA approved condominiums, and manufactured or modular homes attached to a foundation.
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