100% financing for eligible rural and suburban properties with competitive rates
No down payment required from qualified borrowers. Only upfront guarantee fee of 1% can be financed into the loan.
Covers approximately 97% of US land area and 32% of population, including many suburban areas and small towns.
Fixed interest rates often lower than conventional loans, with low annual guarantee fee of just 0.35% of outstanding balance.
USDA Rural Development loans are designed to promote homeownership in eligible rural and suburban areas, offering 100% financing with no down payment required. These government-backed loans help low-to-moderate income families achieve homeownership in areas designated by the USDA as rural or underserved.
Geographic eligibility is broader than many people realize, covering approximately 97% of the United States land area and about 32% of the population. Many suburban areas, small towns, and communities on the outskirts of major cities qualify, including areas in parts of New York, New Jersey, and Florida that Dani serves.
Income limits are based on area median income (AMI) and family size, typically capped at 115% of the area median income. These limits vary by location and are updated annually. For example, a family of four might qualify with household income up to $90,000-$110,000 in many eligible areas.
Credit score requirements are flexible, with most lenders accepting scores of 640 or higher for automated underwriting approval. Borrowers with lower scores may still qualify through manual underwriting, where compensating factors like stable employment and low debt-to-income ratios are considered.
USDA loans offer competitive fixed interest rates, often lower than conventional loans, and require no down payment from qualified borrowers. The only upfront cost is a guarantee fee of 1% of the loan amount, which can be financed into the loan, plus an annual fee of 0.35% of the outstanding balance.
Property requirements include that the home must be in an eligible rural area as defined by USDA maps, be a primary residence (no investment properties), and meet basic safety and habitability standards. Single-family homes, townhomes, and some condos are eligible, but manufactured homes have specific requirements.
The application process involves income verification, asset documentation, and property eligibility confirmation. Processing times can be longer than conventional loans due to USDA review requirements, typically 30-45 days, so early application is important in competitive markets.
USDA loans cannot be used for investment properties or vacation homes - they must be your primary residence. However, they can be used for new construction, existing homes, and certain home improvement projects that add value or improve safety.
Dani helps determine property and income eligibility, navigates USDA requirements, and works with experienced USDA lenders to ensure smooth processing and timely closings for qualified rural homebuyers.
Verify property location eligibility and income limits for your area and family size.
Review your income documentation and credit profile for USDA loan qualification.
Find eligible properties in USDA-approved rural and suburban areas.
Submit application for USDA review and approval, typically taking 30-45 days.
Complete your USDA loan closing with 100% financing and competitive rates.
Let Dani help you determine eligibility and secure 100% financing for your rural or suburban home purchase.