USDA Loans: Buy a Home With Zero Down in Rural Areas

What Is a USDA Loan?

USDA loans are government-backed mortgages for homes in eligible rural and suburban areas. The biggest benefit: zero down payment required.

Eligibility Requirements

Location: Property must be in a USDA-eligible area (97% of US land qualifies, including many suburbs)
Income: Household income cannot exceed 115% of area median income
Primary residence: Must be your primary home

Costs

USDA charges a 1% upfront guarantee fee and 0.35% annual fee (lower than FHA MIP). On a $250K home, that is $73/month — significantly less than FHA's $115/month MIP.

See USDA loan estimates: all states.