USDA Rural Development
USDA Loan Rates - 0% Down for Rural Buyers
USDA Rural Development loans offer 0% down, no PMI, and competitive rates for eligible borrowers buying in qualifying rural and suburban-fringe areas. See live USDA pricing below.
USDA Loan Facts
- Zero down payment - 100% financing for eligible rural and suburban areas
- Guarantee fee of 1.0% upfront (can be financed) plus 0.35% annual fee
- Income limits apply - household income must be at or below 115% of area median income
- Primary residence only - must occupy the home as your main residence
- Property must be in a USDA-eligible area (check eligibility at usda.gov)
- Minimum credit score typically 640 for automated approval
- Maximum DTI generally 41%, higher with compensating factors
- No maximum loan amount - limited only by your ability to repay
USDA Loan Quick Facts
Down payment
0%
Min FICO
640 (typical overlay)
Upfront guarantee fee
1% (financed into loan)
Annual fee
0.35% monthly
Frequently Asked Questions
What is a USDA loan?+
A USDA loan is a 100% financing mortgage backed by the U.S. Department of Agriculture (Rural Development program). Designed for low- and moderate-income borrowers buying in eligible rural and suburban-fringe areas. Zero down, no PMI, low monthly guarantee fee.
Who qualifies for a USDA loan?+
Borrowers below the USDA income limit for the county (typically 115% of area median income) buying a primary residence in a USDA-eligible area. 640+ FICO is the typical lender overlay; some go lower.
How do I know if my property is USDA-eligible?+
USDA publishes an eligibility map at the USDA Rural Development site. Most truly rural areas qualify, plus surprisingly many suburban-fringe zip codes. Check the property address before assuming.
How much down do I need for a USDA loan?+
$0. USDA loans require zero down payment. You can put money down to reduce the loan size, but it is not required.
Does USDA have mortgage insurance?+
Yes but it is structured differently. USDA charges a 1% upfront guarantee fee (financed into the loan) plus an annual 0.35% monthly fee. The combined cost is lower than FHA mortgage insurance.
Is the $2,000 Best Price Guarantee available on USDA loans?+
No - USDA is not in the Loan Factory $2,000 Best Price Guarantee program (Conv/FHA/VA only). USDA borrowers still get wholesale pricing through Rate Direct.
Apply for a USDA loan
0% down rural mortgage, wholesale pricing.
Start my applicationVA loan rates
Other 0% down option
FHA loan rates
3.5% down, no rural requirement
First-time buyer
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