Skip links

USDA Rural Home Loans

What is a USDA Loan?

USDA loans are zero-down-payment mortgages for rural homebuyers. They’re mainly for borrowers with tighter budgets or those who can’t get a traditional mortgage.

A USDA home loan is a zero down payment mortgage for eligible rural homebuyers. USDA loans are issued through the USDA loan program, also known as the USDA Rural Development Guaranteed Housing Loan Program, by the United States Department of Agriculture.

USDA Home Loan Qualifications


You must be a U.S. resident, noncitizen national or permanent resident alien. ​

Property Location

Homes financed by USDA loans must be in eligible rural or edge of suburbia areas. You can see if a home is eligible by visiting the USDA’s eligibility site.

Income Limits

USDA loans are for families who demonstrate economic need, so your adjusted gross income can’t be more than 115% of the median income in the area.

Ability to Make Payments

To qualify you must show that you have a stable income and can make your mortgage payments without incident for at least 12 months based on your assets, savings and current income.

DTI (Debt-to-Income) Ratio

Your mortgage lender will also look at your debt-to-income (DTI) ratio when they consider you for a USDA loan. To give yourself the best chance of qualification, we generally recommend DTI of 43% or lower.

Credit Score

Most lenders require a credit score of 640 or better. If your score is close to that or below, you may still qualify. Send us a message and let's see what your options are!

Not sure if you Qualify for a USDA Home Loan?

If you are considering a USDA Home Loan, it is important to speak with one of our loan specialists to see if you are eligible and to compare the benefits and drawbacks of this type of loan against other types of loans.

We offer a no-hassle & easy quote without the formal application or credit check required. Just answer a few questions about your mortgage goals! We will review the information you provide with some recommendations and options from our team of experts!

USDA Rural Home Loan Programs

The USDA offers three main mortgage programs:

USDA Direct Loans

These loans are issued by the USDA for qualifying low-income borrowers with interest rates as low as 1%.

USDA Loan Guarantees

These loans are issued by participating lenders and offer low interest rates and minimal down payments.

USDA Home Improvement Loans

These loans are given to qualified homeowners to make repairs or improvements on their homes.

Simple Mortgage Calculator

CFG Simple Mortgage Calculator Widget


Would you like to talk with a Mortgage Loan Expert about these numbers?

Contact Information


Our Locations







New Mexico



News and Blog

Latest Posts