Eligibility
Property must be in a USDA zone
Check usda.gov property eligibility map. Surprisingly broad — outer suburbs, small towns, big chunks of any state. Population threshold: typically <35,000 in the area.
USDA Loans · zero down, geography-gated
Zero down.
If you're in the zone.
USDA loans = 0% down, no PMI, competitive rates. The catch: geography-gated to USDA-eligible areas. Most people picture 'rural' as cornfields. The actual map covers most of the country's outer suburbs.
· USDA basics
Five facts.
Check eligibility first.
Income
Income limits apply
USDA limits household income to typically 115% of area median. Mid-income buyers in lower-cost areas often qualify cleanly. Higher earners in expensive suburbs may not.
Floor
0% down + 640 typical credit
Minimum 580 with manual underwriting; 640 is the standard automated approval floor. Lower scores = harder to find a lender willing to do USDA manual underwriting.
Fees
1% upfront fee + 0.35% annual
Funding fee: 1% of loan, financed in. Annual fee: 0.35% of loan, paid monthly. Cheaper than FHA's MIP, more expensive than conventional PMI removed.
Property
Single-family primary residence only
Must be your primary residence. Single-family or USDA-approved condos. No investment, no multi-family. Property must meet HUD minimum standards (similar to FHA).
· Watch-outs
Four myths
about USDA.
Pitfall 01
'I'm not rural enough for USDA.'
Check the actual map. Many people are surprised — outer suburbs of major metros often qualify. usda.gov property eligibility map is free.
Pitfall 02
Forgetting the income cap.
Higher earners can be over the limit even if the property qualifies geographically. Run your household income against the cap before falling for the property.
Pitfall 03
Skipping USDA when comparing loans.
Many LOs default to FHA without checking USDA eligibility. Always ask: 'Is this property USDA eligible?'
Pitfall 04
Long approval timelines.
USDA loans add 1-2 weeks to underwriting (USDA office must approve, on top of lender approval). Plan your close-date offer accordingly.
USDA is the underused 0-down play.
Most LOs don't check.
Five minutes. We check your property's USDA eligibility AND compare USDA against VA, FHA, and Conventional.