A USDA loan lets moderate-income buyers purchase a home in an eligible rural or suburban area with no down payment. Many towns just outside major cities qualify, so it's worth checking before you assume it won't apply to you.
The USDA Single Family Housing Guaranteed Loan Program backs mortgages for buyers in eligible rural and suburban areas. Because the USDA guarantees the loan, lenders can offer 100% financing with low mortgage insurance costs.
Finance the full purchase price. Your savings can go toward closing costs, reserves, or moving.
USDA charges an upfront guarantee fee and a small annual fee. Both are typically lower than FHA mortgage insurance.
Eligible areas include many small towns and suburbs outside major metros. The USDA eligibility map shows every eligible address.
USDA eligibility depends on where the home is and what your household earns.
USDA loans have two guarantee fees in place of traditional mortgage insurance.
Fees are set by the USDA and can change. Your loan officer will confirm current fees on your Loan Estimate.
Both help buyers with smaller savings. The right one depends on location and income.
USDA works best for these buyers.
If you're flexible on location, a USDA-eligible area can save you the entire down payment.
USDA is built for households earning up to 115% of the local median income.
No down payment means you can buy sooner and keep your savings as a cushion.
Three common USDA situations.
A young couple found a home in an eligible town 30 minutes from the city and bought with no down payment.
A single parent under the area income limit used USDA to stop renting and keep savings for emergencies.
A remote worker relocated to a small town and used USDA financing to buy a larger home for the same payment.
We check the property address and your household income against USDA rules before you get attached to a home, so there are no surprises later.
You work with one loan officer from your first question to the closing table. Clear2 is licensed in 22 states, and every loan officer has the same lender network behind them.
Clear2 Mortgage2600 W Big Beaver Rd, Suite 100Troy, MI 48084(248) 970-0040
Christopher Kas-Marogi founded Clear2 Mortgage and has more than $1 billion in funded residential loans. He built Clear2 as an independent broker so borrowers could get their loan matched to the right lender instead of a single bank's product list.
Five-star reviews from Clear2 clients on Google.
"Donavin was straightforward and a breeze to work with. Communication was quick and easy. The whole process was seamless and he was available for guidance or questions. I would not hesitate to use Clear2 Mortgage in the future."
"Alex was absolutely amazing from the beginning. He was patient and thorough with all of our questions. He even followed up after the process was finalized to ensure everything was still good. I would recommend him to everyone!"
"The process was seamless and every question I had as a first-time home buyer was answered. My loan officer gave me his professional opinion based on my specific circumstances to personalize my loan."
How do I know if a home is in a USDA-eligible area?
Enter the address in the USDA eligibility map, or send it to your loan officer and we'll check it for you.
What are the USDA income limits?
Household income generally must be at or below 115% of the area median income. Limits vary by county and household size.
Do I need a down payment for a USDA loan?
No. USDA loans allow 100% financing for eligible buyers.
Can I use a USDA loan for an investment property?
No. USDA loans are for primary residences only.
Is there a credit score minimum for USDA?
The USDA doesn't set a hard minimum, but lenders do. Many look for a score in the 640 range for automated approval.
Can I buy a farm with a USDA home loan?
No. The guaranteed home loan program is for homes, not working farms or income-producing land.
Send us the address and a few details about your household. We'll tell you if USDA works and what you'd qualify for.
Clear2 Mortgage, LLC. NMLS #1911663. Licensed Mortgage Broker. 2600 W Big Beaver Rd, Suite 100, Troy, MI 48084. Equal Housing Lender. This is not a commitment to lend. All loans subject to credit approval, property appraisal, and underwriting guidelines. Rates and terms subject to change without notice.
