Real estate photography

USDA Loans

USDA loans are designed to help low-to-moderate-income individuals and families purchase a home in eligible rural areas.

USDA loans are backed by the U.S. Department of Agriculture, which allows borrowers to unlock more flexible options such as zero down payment and lower interest rates.

How to get a USDA loan

To get a USDA loan, borrowers must work with a USDA-approved lender to confirm eligibility.

USDA eligibility requirements

USDA loans are designed to help lower-income households.

Eligibility is determined based on the following:

  • Income limits for borrower’s specific location and family size
  • Properties located in eligible rural areas
  • Property is the borrower’s primary residence
  • Credit history and credit score
  • Debt-to-income (DTI) ratio
  • Stable employment and income

To get started with your USDA loan, you will provide basic information about your future property and your finances.


How do you qualify for a USDA loan?

To qualify for a USDA loan, you must confirm with your lender that your property is eligible for financing and meets the program requirements.

You also must complete an application and provide proof of income, employment, debts, and credit history.

What is the minimum credit score for a USDA loan?

It is recommended that borrowers have a score of at least 640, but you still may be able to qualify if you can demonstrate your ability to repay the loan.

USDA vs. FHA loan: What’s the difference?

USDA and FHA loans are both government-backed loans that offer more flexible borrower requirements, but USDA loans are specifically for lower-income households in designated rural areas.

FHA loans are not restricted to rural areas, but they are designed to assist a wide range of borrowers, including those with lower credit scores.

What is the debt-to-income ratio (DTI) for a USDA loan?

A DTI of 41% is preferred, but borrowers may still qualify for a USDA loan if they can meet all of their financial obligations.