The USDA home loan program is one of the best-kept secrets in the home buying market today.

This zero-down, 100% financing home loan is sponsored by the United States Department of Agriculture to promote homeownership in less-dense communities across the U.S.

For this reason, it’s often known as the USDA Rural Development Loan (RD Loan) or Rural Housing Loan. The program is part of the larger Rural Housing Service under USDA’s umbrella of programs.

But don’t let the name fool you. It’s not just for properties that are far-removed from civilization.

In fact, a full 97% of U.S. land mass is eligible for USDA financing, representing 109 million people — about one-third of the U.S. population. It’s very likely that a property near you qualifies.


Connect with a Loan Officer

Loan Officer Thomas Johnston

Loan Officer Thomas Johnston | NMLS# 1583463; Arizona, California, Oregon, Texas and Washington

Thomas is your mortgage loan originator, who works side by side with a strong team that shares the same devotion to excellence.
Experienced, knowledgeable, and always up to date on the industry's latest products, Thomas strives to exceed the customers' expectations in each and every transaction.

Do you have any questions? Please call 866-610-6025


Benefits of The USDA Loan Program

No Downpayment Loan (100% Financing)

Amongst the several benefits of the USDA  program, the ability to put zero-down and get 100% financing is one of the greatest benefits. They are one of only two types of mortgage loans that require no down payment, the other being VA loans. These benefits make these loans perfect for first-time home buyers.

Roll Your Closing Costs in to the Loan

Closing costs are fees charged by lenders for processing and issuing a loan. One average these costs can range from 2%-5% of the purchase price.

USDA loans are the only type of mortgage loan that allows a buyer to roll their closing costs into the mortgage. This means you are able to finance more than 100% of the sales price.

The seller can pay up to 6% of the closing costs for the buyer.

Low Mortgage Insurance Premiums

USDA mortgages the lowest MIP of any home loan program besides the VA, which requires no mortgage insurance. The annual MIP is just 0.30%. When compared to the FHA PMI fee of 0.85% the savings is substantial.

On a $200,000 home, PMI on an FHA loan is $1700 per year. A $200,000 home, USDA PMI will be just $600 annually, a savings of $1100 per year.

There is a one time up-front mortgage insurance payment of 1% of the loan amount that is added into the loan.

Borrowers save an average of $100 per month with a USDA home loan over FHA loans because of the reduced mortgage insurance.

USDA Home Loan Benefits

  • Zero downpayment
  • Low mortgage rates
  • Finance more than 100% of the sales price
  • Low PMI (mortgage insurance)
  • 30yr and 15yr fixed rate options available
  • 640 credit score required
  • 97% of the U.S. is in an eligible zone
  • Must wait 36 months after a bankruptcy or foreclosure to qualify
  • Owner occupied properties only
  • Easier to qualify for that conventional mortgages

USDA Loan Requirements

  • Meet the income limit requirements
  • Be a U.S. citizen, non-citizen national or qualified alien
  • Occupy the property as your primary residence
  • Show a willingness to meet debt obligations
  • Home must be in an eligible location
  • Work with a USDA-approved lender
  • Have an adequate credit score for the loan, preferably 620-640 or higher

To verify if the home you intend to purchase is eligible, head on to the USDA Eligibility page here. Type the exact address of the house in the search box provided, click “GO” and the site will show the eligibility status of the house.


Connect with a Loan Officer

Loan Officer Thomas Johnston

Loan Officer Thomas Johnston | NMLS# 1583463; Arizona, California, Oregon, Texas and Washington

Thomas is your mortgage loan originator, who works side by side with a strong team that shares the same devotion to excellence.
Experienced, knowledgeable, and always up to date on the industry's latest products, Thomas strives to exceed the customers' expectations in each and every transaction.

Do you have any questions? Please call 866-610-6025

What is a USDA Loan? Eligibility, Rates & Advantages for 2018 is available in the following areas/cities