USDA Rural Development backs the cheapest 0%-down loan in America. The catch: your zip and your income both have to qualify. The good news — "rural" covers more places than you'd guess.
What brings you here today?
Most loan programs check the borrower. USDA also checks the address. Both have to clear — but each is more flexible than people expect.
The official rule. Includes most suburbs, exurbs, and small cities outside major metro cores. Excludes the cities themselves and their inner rings. The map at eligibility.sc.egov.usda.gov is authoritative — check the specific address.
$119,850 for 1–4 person households in standard areas. $158,250 for 5–8 person. Each person beyond 8 adds 8%. Counts every adult in the home, not just borrowers. Caps are higher in expensive areas.
Guaranteed (Section 502) — through lenders like us. 115% AMI cap. Most borrowers. Direct — through USDA itself, much lower income cap (50–80% AMI), subsidized rate, very-low-income borrowers only.
Single-family, condo, or manufactured home. Under 2,000 sq ft for most areas. Must be your primary residence — occupy within 60 days. No income-producing use. USDA-assigned appraiser checks property condition.
Same $300K home. Same 720 FICO. Same 6.500% rate. The choice between USDA and FHA at this price point is mostly about savings versus availability.
USDA wins by saving the down payment AND charging less in mortgage insurance over 30 years. The only catch: your area has to qualify.
USDA is the cheapest 0%-down loan in America — but only if your income is under cap and the property qualifies. Move the sliders. The status box tells you in real time.
USDA closes in 30–45 days — slightly slower than Conventional because of USDA's conditional commitment step (2–5 days extra at the end).
Short app. We pull credit, check the address against the USDA eligibility map immediately, and confirm income falls under the cap.
Run through GUS (USDA's automated underwriting). 640+ FICO for clean GUS approval. Pre-approval letter issued.
Offer accepted. We verify the address against the USDA map (again). Lock rate. Order USDA-eligible appraisal.
Lender underwrites. Then USDA Rural Development reviews and issues the conditional commitment. Adds 2–5 days at the end.
Clear-to-close. Sign at title. Funds wire. Keys in hand. Most USDA buyers close in 30–45 days total.
USDA is the most under-used good loan in America. Most buyers don't know they qualify. The tradeoffs are real but narrow.
Real archetypes from our recent files. Numbers rounded. Details composited. The pattern, not the names, is what matters.
Combined income $89,000 (under 1–4 cap). 685 FICO. $310,000 home in a USDA-eligible suburb of Charlotte. $0 down. 1% upfront fee financed. 30-year fixed at 6.500%. Closed in 38 days.
Family of 5, combined household income $162,400. $4,150 over the 5–8 person cap of $158,250. Even with childcare deductions ($6K/yr), adjusted income still landed above the cap. Switched to FHA, closed at 3.5% down on a $385K home in 41 days.
Single buyer, $52K income (under 1–4 cap). Bought a 2022 doublewide manufactured home on permanent foundation in rural Iowa. $185,000 purchase, $0 down, 30-year fixed at 6.625%. Closed in 36 days.
Eight questions, in plain English. If yours isn't here, call us — we'll check the map.
USDA defines "rural" very loosely — and that's the secret. The current definition is areas with population of 35,000 or less, which includes a surprising number of suburbs and exurbs.
Examples of areas that qualify (or have qualified recently): much of suburban Charlotte, parts of metro Atlanta's outer ring, sections outside Phoenix, Dallas-Fort Worth exurbs, and almost all of rural Iowa, Kansas, Missouri.
The map is what matters. Check eligibility.sc.egov.usda.gov with the specific address. The maps are updated periodically; just because a town "feels suburban" doesn't mean it's ineligible.
USDA counts the income of all adult household members, not just the borrowers on the loan. This trips up a lot of buyers.
If your adult sister is living with you while she finishes school, her income counts. If your retired mom collects Social Security and lives in the house, her income counts. If your domestic partner earns $40K and isn't on the loan, that $40K still counts toward the cap.
This is unique to USDA — Conventional, FHA, and VA only count the borrowers' income. If your household total exceeds the cap, USDA is off the table. No exceptions.
Two completely different programs that share the USDA name.
Guaranteed (Section 502) — what we offer. Made through approved lenders like Land Home, backed by USDA. Income cap is 115% of area median (the $119,850 / $158,250 figures cited on this page). Most borrowers use this.
Direct (also Section 502) — loan made by USDA itself, not a private lender. Much lower income limit (50–80% of area median). Subsidized rate. For very-low income borrowers. Apply directly through your USDA Rural Development office.
If you're reading this site, you almost certainly want Guaranteed.
Two questions decide it: does the property qualify for USDA, and is your household income under the cap?
If yes to both: USDA usually wins. $0 down beats 3.5% down. The 0.35% annual fee beats FHA's 0.55% MIP. And the 1% upfront fee can be financed in.
If the property is in a USDA-ineligible area: FHA is your fallback. If your income exceeds the cap: FHA. If you don't know whether the area qualifies: let us check the map. It's instant.
USDA itself has no formal credit score floor — it's up to lenders. Most USDA-approved lenders, including Land Home, require 640 FICO for automated underwriting (GUS).
Below 640, manual underwriting is theoretically possible but rare. Most files in the 580–639 range are easier to close as FHA loans, which has more flexibility for lower scores.
If your score is right around 640, focus on getting it stable above the line before applying. A 642 score with clean documentation is far easier to close than a 638 with the same file.
USDA Guaranteed has no fixed loan limit. The limit is your debt-to-income ratio and ability to repay — same as VA full entitlement.
Practically, the income cap is the real constraint. With a $158K household income (8-person family in standard area), you'll qualify for roughly $400–$500K depending on debts, taxes, and rate.
USDA is one of the few programs where you can buy a $400K home with $0 down — provided the area qualifies and your income is under cap.
Condos: Yes, if the development is on an approved list (usually shorter than FHA's). Most rural condos aren't common, but some exist in resort areas.
Manufactured homes: Yes — USDA is one of the most flexible programs for manufactured housing. Must be 2018-or-newer, on a permanent foundation, doublewide minimum.
New construction: Yes, both stick-built and modular. The home must be complete and certified before USDA finalizes the loan, but you can finance the purchase from a builder normally.
What USDA doesn't finance: investment properties, vacation homes, working farms (use Farm Service Agency for those).
USDA allows several income deductions before applying the cap:
$480 per dependent child (under 18 or full-time student under 22).
$480 for elderly/disabled household members.
Childcare expenses — full deduction for childcare allowing a parent to work.
Medical expenses — anything over 3% of income for elderly/disabled members.
Practically: a family of 6 with $160K gross income, two kids under 18, and $8K in childcare may have adjusted income under the cap. Don't self-disqualify on the gross number. Run the math.
Sixty-second short app. We check your address against the USDA map and your income against the cap on the same call. One real LO calls within an hour.