A loan with low interest and zero down payments designed for low-income Americans who don't have good enough credit to qualify for traditional mortgages. You must use a USDA loan to buy a home in a designated area.
U.S. citizenship or legal permanent resident (i.e. U.S. non-citizen national or qualified alien)
Ability to prove creditworthiness, typically with a credit score of at least 640
Stable and dependable income
A willingness to repay the mortgage - generally 12 months of no late payments or collections
Adjusted household income is equal to or less than 115% of the area median income
Property serves as the primary residence and is located in a qualified rural area
To be eligible for a USDA loan, applicants must meet the basic eligibility requirements set forth by the USDA, which cover credit, income, property usage and home location.
Each factor plays a significant role in meeting the USDA’s mission of providing safe and sanitary housing for low to moderate-income families.
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