USDA Rural Home Loan Mortgages

Are you thinking about living far away from the hustle and bustle? The U.S. Department of Agriculture (USDA) offers rural loan mortgages that make purchasing a home in a rural area more affordable. The loan program provides favorable lending terms that encourage people like you to consider homes in areas beyond the urban and suburban areas.

Pros:

0% down
No minimum credit score
Credit is reviewed on a case-by-case basis
6% seller-paid contributions allowed

Cons:

Property must be located in a rural area as defined by the program
Income maximums do apply

Best for:

People looking to purchase a home in a rural area
People who can’t find a home within city limits

What are USDA rural development loans?

USDA loans are government-backed loans made available to people looking to purchase or refinance a home within designated areas.

Terms for conventional loans

Loan programs at 30-year terms. 0% percent down is possible.

USDA Rural Development Home Loan

Fixed-rate, 30-year term, 0% down possible.

0%

Possible min. down payment
6%

Seller-paid contributions allowed
No

Min. credit score required

Check Rate

Am I eligible for a USDA rural home loan?

First, the property you’re interested in buying must be located within a designated rural area. Currently, the USDA defines that as having a population of less than 50,000 (locations and definitions can change). Check the USDA loan eligibility map to verify that your property qualifies. There are also restrictions that apply relating to citizenship status, work history, and household income. We advise meeting with a Summit Mortgage loan officer to see if you are eligible.

Quick homebuyer tools

Use these resources to calculate numbers and check your credit status.

Is a rural home loan right for my financial situation?

Looking for an expert opinion? A Summit Mortgage loan officer can help you determine if today is the right time for a USDA rural home loan.

Schedule a free consultation

A local Summit Mortgage loan officer has the expertise to guide your decision-making process, answer questions, and get you approved with the best rural home loan program for your unique situation. Find a loan officer who’s right for you.

Calculate your potential savings

Use our mortgage calculator to estimate your monthly payment by adjusting factors like purchase price, down payment, interest rate, and term. Then, connect with a loan officer to explore mortgage and refinance options that fit your budget.

How do I apply for a USDA Rural Development (RD) home loan?

Applying for a USDA rural home loan or determining if this type of loan is right for you is simple! Use our Quick Start Form to connect with a Summit Mortgage loan officer who can help guide you through the process.

Curious about what comes next? View our step-by-step application checklist to learn about the process and take your first step toward homeownership.

Get Started

Common USDA rural home loan questions

Is it hard to get a USDA rural home loan?

No, USDA loans are not harder to qualify for than other programs. In fact, they are often more accessible to homebuyers with lower credit scores. However, the program is limited to specific geographic areas and has income restrictions, so it may not be available to all borrowers.
Are USDA home loans only available for farms?

No. USDA home loans are primarily designed for properties located in rural areas, which often include farms. However, they can also apply to other areas that meet the program’s eligibility criteria. If in doubt, it’s always best to check if the address of the property you hope to purchase is on the USDA eligibility map.
Do rural home loans offer adjustable-rate mortgages?

No, USDA offers 30-year, fixed-rate terms only.
What rural areas qualify for USDA home loans?

The USDA determines which areas qualify. Please enter the property address you hope to purchase into their eligibility map tool to see if it qualifies.
What is the difference between USDA direct and guaranteed loans?

USDA Direct Home Loans are facilitated directly with USDA through a local rural development service center. An approved lender facilitates USDA Guaranteed Home Loans.
Do you need to be in the agriculture industry to get a rural mortgage loan?

No, the property’s location determines USDA loan eligibility but is not restricted to being part of the agriculture industry.
Are there limits on the types of land/housing that qualify for USDA rural loans? (mobile homes/foreclosures)

USDA-guaranteed home loans can be used for existing single-family homes, new construction (less than one-year-old and never occupied), proposed construction, site built, modular, PUD, Condominiums meeting specific criteria, and manufactured homes( must be new).

Is a USDA rural home loan right for you?

How do USDA rural loans stack up to other mortgage types?

USDA loans are an excellent option with competitive rates and favorable terms. However, they aren’t available to all buyers or properties. Reach out to a Summit Mortgage loan officer today to see if you qualify.

Schedule a free consultation with our mortgage experts

Summit Mortgage employs some of the most experienced loan officers in the country. Our in-depth knowledge of USDA rural loans, combined with our commitment to understanding your goals, will ensure your homebuying experience is as smooth and rewarding as possible. Find a loan officer near you.

Next steps to find your home loan

Congratulations, you’re on your way to finding the loan that’s right for you. If you’re ready to get matched with a Summit Loan Officer to help you with the next steps, use our Quick Start Form.

If you’d like more information first, explore our online resources to learn about the key questions to ask your lender.

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