FAQs (data-driven)

Rural Housing

• What is a rural housing (USDA) loan?

  A mortgage program funded by the United States Department of Agriculture (USDA). The mortgage program allows opportunities for borrowers to qualify in rural areas.

• Who qualifies for a USDA loan?

  Qualifications and eligibility for a USDA loan relies on income, property area, residency requirements, along with additional financial and underwriting requirements.

• Can only specific areas qualify for a USDA loan?

  Yes. Homes must be purchased in designated eligible areas; these are defined by the USDA.

• How do I know if a property is eligible for a USDA loan?

  Property eligibility is based on designated eligible areas defined by the USDA. Check to see if the area you are looking to purchase qualifies; USDA Property Eligibility.

• Will a down payment be required?

  Down payments are not required for a rural housing (USDA) loan. Additional fees may apply.

• Are there additional fees?

  Yes. An annual fee is required for a USDA loan; based on the total loan amount. The fee is paid monthly for the life of the loan.

• What are the benefits of a USDA loan?

  Benefits include:
  - Reduced fixed rates
  - 0% down payment options
  - First-time home buyers and home buyers are eligible