The United States Department of Agriculture was started with the intention to govern the production of food and assure a safe and sanitary environment to prevent the general population from getting sick. Now, the USDA monitors all aspects of food safety from the cattle on the farm to the development of rural areas and the packaging of the beef leaving the factory.


What are USDA Loans?

These loans are designed for low to medium-income families in specified, predetermined rural regions that are purchasing a home. More than 90% of U.S. land mass is eligible for USDA loans. These loans have major advantages if you qualify. Some advantages include:

  • 0% down payment
  • Lower mortgage rates
    • Additionally, this is a fixed rate that will not fluctuate when rates climb. 
  • No repeating fees: There is a one-time funding fee that is financed into the loan, to assure the $0 down payment. 
  • Low mortgage insurance
  • Closing costs are capped at 6% for those involved with selling the home, preventing you from paying an excessive amount in closing costs, if you have to pay any. 

Who Qualifies for USDA Loans?

There are a few qualifying factors for USDA loans. Many of these will need to be verified with a USDA certified loan associate. If you are interested in checking if you qualify, contact us! Some of the factors include:

  • Living in a region that was predetermined by the USDA
  • Qualifying for the income requirements
  • Agree to occupy the home as a primary residence
  • Be a U.S citizen, non-citizen nationals, or Qualified Alien
  • No suspensions from Federal programs
  • Willingness to meet credit obligations


How can USDA loans be used?

USDA loans can be used for a variety of home buying related actions, including:

  • Purchasing a new or existing home
  • Repairs associated with purchasing a new dwelling
  • Refinancing eligible loans
  • Special design features, or installing permanent alterations to accommodate special needs for occupants. 
  • Essential household equipment such as wall-to-wall carpeting, ovens, ranges, refrigerators, washers, dryers, heating, and cooling equipment as long as the equipment is conveyed with the dwelling
  • Purchasing and installing measures to promote energy efficiency (e.g. insulation, double-paned glass, and solar panels)
  • Installing fixed broadband service to the household as long as the equipment is conveyed with the dwelling
  • Site preparation costs, including grading, foundation plantings, seeding or sod installation, trees, walkways, fences, and driveways