USDA RURAL DEVELOPMENT · SECTION 502 GUARANTEED
USDA home loans
An eligible home. A qualifying household. No down payment required.
A USDA loan is a mortgage backed by the U.S. Department of Agriculture for eligible low- and moderate-income households buying a primary home in an eligible rural area. This page covers the lender-issued Guaranteed Loan Program, rather than USDA’s separate Direct Loan Program.
Check an address on USDA’s official map ↗ See who can qualifyOn this page
Who can qualify?
- Eligible location: the home must be within USDA’s eligible rural area boundaries.
- Household income: meet USDA’s applicable adjusted household income limit, generally up to 115% of area median household income. Limits vary by location and household size.
- Primary residence: you must live in the home; investment properties and vacation homes do not qualify.
- Citizenship or eligible status: meet USDA’s U.S. citizen, U.S. non-citizen national, or qualified alien requirements.
- Repayment ability: document stable, dependable income and an acceptable debt and credit history. First-time buyer status is not required.
- Other financing: the lender must evaluate USDA’s requirement that you cannot obtain traditional conventional mortgage credit as defined by the agency.
Household income for the program limit may include income from household members who are not borrowers, subject to USDA exclusions and deductions. This differs from the borrower income used to qualify for the payment.
USDA does not set a universal minimum credit score for this program. Individual lenders can have additional credit requirements.
Check household income eligibility ↗How much down payment is required?
Eligible buyers can obtain 100% financing with no required down payment. USDA Guaranteed loans have a 30-year fixed-rate term; rates are set by the lender.
No down payment does not mean no cash is needed at closing. Closing costs, prepaid taxes and insurance, and an appraisal shortfall may require funds. Eligible costs may be financed when the appraised value and program rules allow. Permitted gift funds and seller contributions may help.
USDA charges an upfront guarantee fee and an annual fee that may be passed on to the borrower. The upfront fee may be financed when permitted; the annual fee affects the monthly payment. Ask for the current fee amounts and a Loan Estimate showing your total payment and cash to close.
References: USDA program fact sheet ↗ and 7 CFR Part 3555 ↗.
Does a property address qualify?
- Open the official USDA property eligibility map below.
- Choose Single Family Housing Guaranteed if prompted, read and accept USDA’s disclaimer, and enter the full street address.
- Review the map result. If the address is not found or sits near a boundary, ask our team to help verify it.
- Use the separate income tool to check the household, then request a full loan review.
Open USDA’s income eligibility tool ↗
The map is a preliminary guide. USDA states that final property eligibility is determined after a complete application. An eligible location alone does not guarantee financing.
Official federal USDA guidelines
Use the federal sources below for program details and updates. Guidance and eligibility boundaries can change.
- USDA Single Family Housing Guaranteed Loan Program ↗ — program overview and borrower requirements.
- HB-1-3555: Guaranteed Loan Program Technical Handbook ↗ — USDA’s lender and underwriting guidance.
- 7 CFR Part 3555: Guaranteed Rural Housing Program ↗ — governing federal regulations.
- USDA Guaranteed Loan Program fact sheet (PDF) ↗ — a short federal overview.
Federal sources reviewed October 20, 2026. Faulkner Financial Group is not a government agency; USDA does not endorse a specific private lender.
Let’s check your next step.
Have a property in mind? Contact our team to discuss its location, household size, income, and purchase plans. We can review available lender options and estimated costs.
Contact Faulkner Financial GroupEducational information only. Not an approval or commitment to lend. Availability depends on lender participation, applicable licensing, property eligibility, and borrower qualifications. All loans are subject to underwriting.