USDA Home Loans
Backed by the United States Department of Agriculture to promote home ownership in areas the federal government deems rural. Also called rural development loans, or RD loans — and the map covers far more of Florida than most buyers expect.
USDA Home Loans
Requires no money down. One of only two programmes that finance the full purchase price, and the only one open to buyers with no military service.
Closing costs can be rolled into the loan, up to the appraised value. If the home appraises above the purchase price, that difference can absorb your costs rather than your savings.
The seller can pay up to six percent of the sales price towards the buyer's closing costs and pre-paids — the same generous allowance FHA gives, and it must be negotiated into the contract.
Eligibility is based on household income. A family of four can have household income of up to $74,650. The figure counts the whole household, not only the people on the loan.
Limits vary by county and household size, and the USDA revises them. We will confirm the current figure for your area.
The house must be in an eligible — rural — area. To check a specific property, contact us, or visit www.usda.gov and click property eligibility.
Send us an address and we will check it for you in a couple of minutes.
Credit scores must meet the minimum USDA guidelines. There is more flexibility here than people assume, particularly where the rest of the file is strong.
Owner occupied only. USDA cannot be used for a second home, a vacation property or a rental — it exists to put people into homes they will live in.
You do not have to be a first time home buyer. In most circumstances, however, you cannot own another home simultaneously.
U.S.D.A. mortgages are also referred to as
rural development loans, or RD loans.
They exist to promote home ownership in areas deemed rural by the federal government — which is precisely why the terms are more generous than anything a lender would offer on its own.
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Start your application from your phone and finish it at your desk. Whether you're buying, refinancing or just exploring, we're here to help.
FrequentlyAsked Questions
No — and it's the single most common reason people delay buying. Conventional starts at 3% down, FHA at 3.5%, and VA and USDA can require nothing at all. The trade-off is mortgage insurance and a higher payment, which is worth weighing against several more years of saving.
It usually comes down to credit. FHA is more forgiving of past credit events and starts at 3.5% down, but its insurance typically stays for the life of the loan. Conventional needs stronger credit, starts at 3%, and its PMI cancels at 20% equity — which can be worth thousands over time.
USDA uses its own eligibility map and the boundaries surprise people — plenty of areas that feel suburban still qualify. There are also household income limits by county. Send us an address and we'll check both in a couple of minutes.
Often, yes. You'll use one loan program, but it can frequently be paired with assistance run by your state or county. These are consistently underused because buyers don't know they exist — ask us which ones you'd qualify for.
For the right situation it's a genuine option; for the wrong one it's expensive. The balance grows rather than shrinks, and it affects what's left to heirs. HUD counselling is required for good reason. We're glad to walk through it with your family present, and to compare it against downsizing or a HELOC first.