USDA Loans

Looking for affordable financing with no down payment? USDA loans offer a unique opportunity for eligible homebuyers in rural and suburban areas to purchase a home with little to no money out of pocket. If you’re searching for a loan that combines low interest rates, flexible credit guidelines, and government backing, understanding the USDA loan program is a smart place to start. Explore all your home loan options here.

What Is a USDA Loan?

A USDA loan is a mortgage backed by the U.S. Department of Agriculture as part of its Rural Development Guaranteed Housing Loan program. The purpose is to make homeownership more accessible to low- to moderate-income borrowers living in eligible rural or suburban areas. This type of loan requires no down payment and offers reduced mortgage insurance costs compared to other government-backed options. Check your USDA loan eligibility today.

Types of USDA Loans

There are three main types of USDA loans:

• Single Family Housing Guaranteed Loan: Issued by approved lenders and backed by the USDA.
• Single Family Housing Direct Loan: Offered directly by the USDA to eligible borrowers with very low incomes.
• Home Repair Loans and Grants: Provide funding to improve or modernize homes or remove health and safety hazards.

Each loan type serves a specific need, but all offer affordable terms and are designed to promote stable homeownership in underserved communities. Start your USDA loan application here.

Benefits of USDA Loans

USDA loans come with several powerful advantages:

• No down payment required – one of the few programs that offers 100% financing.
• Competitive fixed interest rates – typically lower than conventional rates.
• Reduced mortgage insurance costs – more affordable than FHA or conventional MI.
• Flexible credit guidelines – manual underwriting is allowed when needed.
• Government-backed security – added confidence for both borrowers and lenders.

If you’re unsure how USDA compares to other options, we’ll help you explore side-by-side comparisons of USDA vs FHA, Conventional, and VA loans. Let’s talk about what works best for you.

USDA Loan Eligibility Guidelines

To qualify for a USDA loan, you must meet several requirements, including:

• Location: The property must be in an eligible rural or suburban area as defined by the USDA.
• Income: Household income must fall within the program limits based on area and household size (typically 115% of median income).
• Credit: While there is no official minimum credit score, most lenders prefer a score of 620+. Manual underwriting is available for lower scores.
• Occupancy: The home must be a primary residence. No investment properties are allowed.

Use the USDA’s eligibility map to check if your desired property location qualifies, or let our team run the numbers for you.

USDA Loan Process – What to Expect

Here’s how the USDA loan process works when you apply through the JD.Mortgage team:

1. Fill out our quick online application.
2. We evaluate your scenario and confirm eligibility for USDA guidelines.
3. We provide pre-approval and walk you through income and property eligibility.
4. You find a qualifying home with your agent and submit the contract.
5. We process the loan and submit to USDA for final approval.
6. You close on your new home – often with no money down!

We handle the heavy lifting so you can focus on finding the perfect home. Connect with a loan advisor today.

Common Misconceptions About USDA Loans

Myth #1: “USDA loans are only for farms.”
Fact: These loans are for regular single-family homes in approved areas—not agricultural land or working farms.

Myth #2: “My credit isn’t perfect, so I won’t qualify.”
Fact: USDA loans allow for flexible credit standards and manual underwriting, especially for those with strong compensating factors.

Myth #3: “Rural means remote or isolated.”
Fact: Many suburban areas qualify, including communities just outside of major metro areas.

Still unsure if this loan fits your needs? Browse our glossary of mortgage terms to learn more.

USDA vs FHA vs Conventional: What’s the Difference?

Here’s how USDA compares to other popular loan types:

Need help figuring out which one is best? Compare your options now.

Who Should Consider a USDA Loan?

This loan is ideal for:

• First-time homebuyers seeking low or no down payment options
• Borrowers with limited savings or income
• Families looking to purchase in small towns or outskirts of metro areas
• Buyers with lower credit scores who still meet overall guidelines

We’ll help you navigate whether USDA, FHA, or another program fits your needs. Let’s talk about it.

USDA Refinance Options

Already have a USDA loan? You may qualify for a USDA Streamlined Assist Refinance. This program helps existing borrowers lower their monthly payments with no appraisal, no credit check, and minimal documentation. See if you’re eligible to refinance today.

Partnering with the JD.Mortgage Team

When you work with the JD.Mortgage team, you get access to fast pre-approvals, expert advice, and a team that understands how to structure your loan for long-term success. We offer service across 49 states (excluding New York) and are proud to support buyers with flexible credit, complex income, and limited funds.

Explore All Loan Options

The JD.Mortgage team offers a variety of options, including VA Loans, FHA Loans, Conventional Loans, DPA Programs, DSCR Loans, Bank Statement Loans, ITIN Loans, HELOCs, Second Mortgages, Reverse Mortgages, USDA Loans and Construction Loans. Explore the full list here.