USDA loans are designed for low to moderate income households. Income limits vary by county and household size. Generally, your household income cannot exceed 115% of the area median income (AMI). For most areas, this ranges from $90,000-$110,000 for a family of 4, but limits can be higher in expensive areas. We'll check current limits for your specific county and help you determine eligibility.

Approximately 97% of U.S. land area qualifies as rural or suburban under USDA guidelines, including many communities near major cities. Properties in towns with populations under 35,000 typically qualify. We provide free area eligibility checks using the USDA's online eligibility map. Simply provide an address, and we'll confirm eligibility within minutes.

USDA loans require a guarantee fee instead of private mortgage insurance (PMI). There's an upfront guarantee fee of 1% of the loan amount (can be financed into the loan) and an annual fee of 0.35% of the loan balance. This is typically lower than conventional PMI rates of 0.5%-1.5% annually, resulting in lower monthly payments. The guarantee fee protects the lender if you default on the loan.

Yes! USDA loans offer 100% financing for qualified borrowers, meaning you can purchase an eligible home with no down payment. This is one of the few programs that allows 0% down. You'll still need funds for closing costs, though sellers are permitted to contribute up to 6% toward your closing costs and prepaids, potentially reducing your out-of-pocket expenses significantly.

While there's no official minimum credit score for USDA loans, most lenders prefer a credit score of 640 or higher for streamlined automated underwriting approval. Scores between 580-639 may qualify with manual underwriting and compensating factors such as stable employment, low debt-to-income ratio, or significant savings. We work with borrowers of all credit profiles to find approval paths.

The typical USDA loan timeline is 30-45 days from application to closing, similar to conventional loans. However, USDA requires an additional approval step where the USDA Rural Development office reviews and approves the loan, which can add 2-7 days. We streamline the process by ensuring your application is complete and accurate before submission, minimizing delays and getting you to closing as quickly as possible.

USDA loans can be used for single-family homes, townhouses, condos (in USDA-approved projects), and modular/manufactured homes on permanent foundations. The property must be in a USDA-eligible rural or suburban area, serve as your primary residence, and meet USDA minimum property standards for safety, soundness, and livability. Investment properties and vacation homes do not qualify.

Yes, USDA offers refinancing options for homeowners with existing USDA loans. The USDA Streamline Refinance program allows you to refinance without a new appraisal or income verification if you're current on your payments. You can also do a USDA cash-out refinance to access equity. However, if your current loan is conventional or FHA, you cannot refinance into a USDA loan - USDA refinances are only for existing USDA borrowers.

USDA loans are very flexible with seller concessions. Sellers can contribute up to 6% of the purchase price toward your closing costs, prepaids, and discount points. This is higher than conventional loans (3% max seller concessions) and FHA loans (6% but with more restrictions). With strategic negotiation, you may be able to purchase a home with minimal or zero out-of-pocket costs beyond earnest money.

Once you close on your USDA loan, there are no income restrictions going forward. Your income can increase without affecting your loan or requiring refinancing. The income limits only apply at the time of application and approval. You can keep your USDA loan even if your income later exceeds the area limits. However, if you refinance, you would need to re-qualify under current USDA guidelines.