USDA Rural Development Loan
A zero-down loan backed by the U.S. Department of Agriculture for buyers in eligible rural and suburban areas. Income limits apply, but the eligible-area map is broader than most people expect.
- Down payment
- 0% down in eligible rural and many suburban areas.
- Credit context
- No USDA-set minimum, though lenders often look for about 640 for streamlined processing. A guarantee fee and annual fee apply instead of standard PMI.
- Income rules
- Household income limits apply, generally up to 115% of the area median, and the home must sit in a USDA-eligible location.
Individual lenders set the interest rate, fees, mortgage-insurance treatment, and final approval requirements. Compare written Loan Estimates before choosing.
How repayment works
Your monthly housing payment usually includes principal and interest, and may also include property taxes, homeowners insurance, mortgage insurance, and association fees. Your lender’s written Loan Estimate and Closing Disclosure control the actual costs and terms.
A lower advertised down payment does not necessarily mean the lowest monthly payment or lowest total cost.
Who it may fit
- First-time buyers who want a clearer path
These are situations worth exploring, not a qualification decision.
What could rule it out
- The issuing body does not set a single credit floor; each lender sets its own.
- Household income may not exceed 115% of area median income for the property location.