USDA home loans · Room for your next chapter
A sunny porch, space for the dog, and a home where life can unfold. A USDA loan may help you get there with 100% financing and no down payment. Let's see whether the home you love and your household qualify.
A home loan worth exploring
A USDA Guaranteed home loan is a mortgage made by an approved lender and backed by the U.S. Department of Agriculture. It helps eligible households purchase a primary home in a designated rural area with no required down payment. You do not need to be a farmer, and the home does not have to be on a farm.
This page explains the Section 502 Guaranteed program, which offers a 30-year fixed-rate loan. USDA's separate Direct loan program has different rules. We'll start with your plans, the property address, and a house spending plan that leaves room for everyday life.
Learn with Amy
Start with Amy's video on USDA loan requirements and who qualifies. Then keep learning with her detailed guide for buyers exploring homes around Roseville and the surrounding communities.
Let's check the fit together
The home must be in a USDA-designated eligible area and meet property standards. Some smaller communities near larger cities qualify. We'll check the exact address rather than assume an entire town is eligible.
Check USDA's property map →Income limits depend on location and household size. USDA generally describes the limit as 115% of area median household income; we use its published limits and allowable adjustments for your household.
Income from adult household members may count even when they are not on the loan. This eligibility calculation differs from the income used to qualify for repayment.
Explore income eligibility →USDA itself does not set a universal minimum credit score. Lenders can set their own minimums and additional requirements. A score you see online is not automatically the requirement for your loan.
We'll confirm our current credit requirements and review payment history and the complete application with you.
Debt-to-income compares monthly debt payments with qualifying monthly income before taxes. USDA's standard benchmarks are 29% for housing costs and 41% for total debts, including housing.
Higher ratios need an acceptable automated underwriting result or a qualifying waiver. Manual waivers have specific limits and conditions. If debts take a large share of your income, USDA may be a tighter fit than another program.
The home must be your primary residence. We also review citizenship or eligible immigration status and other borrower requirements. See USDA's income guidance, credit guidance, and debt-ratio guidance.
Understand the whole payment
100% financing means an eligible buyer can purchase without a required down payment. Closing costs, prepaid taxes and insurance, inspections, and moving expenses still need a plan. The financed amount is subject to the appraisal and program limits.
Eligible closing costs may be financed when the appraised value supports them. Approved seller contributions or gift funds may also help. We'll show you the cash needed to close. Financing costs increases the amount you borrow.
USDA does not charge conventional private mortgage insurance, or PMI. It does have a guarantee fee upfront and an annual fee collected monthly. Calling it a loan with no mortgage-insurance cost would leave out an important part of your payment.
| Cost | USDA Guaranteed | FHA |
|---|---|---|
| Upfront charge | 1.00% guarantee fee | 1.75% upfront mortgage insurance |
| Annual charge, paid monthly | 0.35% of scheduled average unpaid principal balance | 0.55% in the example described below |
| How long it lasts | Annual fee generally continues for the loan's term; it does not cancel at 20% equity | For this low-down-payment example, annual mortgage insurance continues for the loan's term |
USDA figures are for fiscal year 2026. The FHA example is a mortgage longer than 15 years, with a base loan of $726,200 or less and a loan-to-value ratio above 95%. Other FHA scenarios have different annual premiums or durations. Fees may be financed when permitted, increasing the loan balance. Confirm the applicable schedule for your transaction.
USDA's fee percentages are lower in this comparison, but the best choice depends on the full payment, rate, closing costs, and how long you expect to keep the loan. Read the USDA fee notice, USDA financing and fee rules, and HUD's FHA mortgage insurance schedule.
USDA can be a competitive option worth comparing. The lender sets your interest rate; it is not a single rate set by USDA. We'll compare current offers, points, and total costs with FHA and conventional financing so you can decide with the whole picture in front of you.
Benefits and trade-offs
If USDA does not fit, explore our First-Time Home Buyer Hub, down payment assistance, or VA loans if you have eligible military service.
Yes, eligible buyers can purchase with no required down payment. The appraisal, property, income, credit, and loan requirements still apply, and closing costs and other expenses need to be accounted for.
No. Designated eligibility areas can include smaller communities near larger cities. Start with the exact address on USDA's map, then have us confirm the property's eligibility.
Eligible income from adult household members can count even if they will not sign the loan. Allowable exclusions and deductions may apply. Household eligibility and repayment income are separate calculations.
USDA has no universal minimum score, but lenders can require a minimum score and other credit standards. Ask Amy to confirm the current requirements for your file. Payment history and the full application matter too.
USDA's standard benchmarks are 29% for housing and 41% for total debt. Acceptable automated underwriting results or specific manual waivers can allow exceptions, but they are not guaranteed. We'll review your debts early.
No. The annual guarantee fee generally lasts for the loan's term and differs from cancellable conventional PMI. Its dollar amount is recalculated as the scheduled balance declines.
Eligible costs may be included when sufficient appraised value supports them within program limits. The upfront guarantee fee can be financed above the appraised value when permitted. We'll explain what funds you still need.
No single program is best for everyone. We'll compare eligibility, the home, current pricing, cash needed, and long-term costs. Your comfort with the payment matters as much as whether a program allows it.
Keep learning at your own pace
Save a copy, read at your own pace, and bring your questions to our conversation. You don't have to figure out every step on your own.
Free downloadable PDF
Download Your USDA GuideProgram details can change after a guide is published. Use the current guidance on this page and confirm the requirements for your loan with Amy.
Amy DeBusk | Mortgage Made Easy
Whether you're picturing a little more outdoor space or simply a place that is yours, you don't have to sort through every loan rule alone. Bring your questions. Amy and our team will help you understand where USDA may fit and what to do next.
Let's Talk About Your Next ChapterPrefer to call or text? (916) 705-2557.
Program information reviewed September 27, 2026. Requirements, fees, and availability can change. This page is educational; all loans are subject to borrower, property, and program approval.
