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USDA Loan

Backed by the U.S. Department of Agriculture, USDA loans help low- to moderate-income households buy homes in eligible rural and suburban areas with no down payment.

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Illustrative home in a rural setting

What is a USDA Loan?

A USDA loan, also called a Rural Development loan, is a mortgage guaranteed by the U.S. Department of Agriculture. It is designed to encourage homeownership outside of major cities. Many small towns and suburbs qualify, so it is worth checking even if you do not think of your area as rural.

0% down

Finance 100% of the purchase price on an eligible home.

Lower mortgage insurance

Guarantee fees are typically lower than FHA mortgage insurance.

Competitive rates

Government backing helps keep rates attractive.

Primary homes

Designed for owner-occupied single-family homes.

Is a USDA Loan right for you?

Who it is for

  • Buyers in USDA-eligible rural and many suburban areas
  • Households whose income is within the local USDA limit
  • Buyers with little saved for a down payment
  • Borrowers who will live in the home as their primary residence

Benefits

  • No down payment required
  • Low upfront and annual guarantee fees compared with FHA mortgage insurance
  • Competitive fixed rates
  • Closing costs can sometimes be financed if the home appraises above the price

Things to consider

  • Property must be in an eligible area
  • Household income limits apply, counting everyone in the home
  • Primary residences only; no investment properties
  • 30-year fixed is the standard term

Everything about the USDA Loan

Choose a topic to jump to the details.

Property eligibilityIncome limitsGuarantee feesCredit and income guidelinesHow to check property and income eligibilityUSDA Loan FAQs

Property eligibility

The home must be located in a USDA-eligible area. The USDA publishes an eligibility map, and many suburban communities are included.

We will check any address you are considering before you make an offer.

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Income limits

USDA loans have household income limits that vary by county and household size. The limit applies to everyone in the household, not just the people on the loan.

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Guarantee fees

USDA loans have an upfront guarantee fee that can be financed and a small annual fee paid monthly. Together they are usually less expensive than FHA mortgage insurance.

USDA loans carry an upfront guarantee fee, currently 1% of the loan amount and usually financed, plus an annual fee of 0.35% paid monthly. These are often lower than FHA mortgage insurance, which helps keep the payment down.

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Credit and income guidelines

Fidelity works with credit scores of 580 and higher on USDA loans. You will also need stable, verifiable income and a manageable debt-to-income ratio.

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How to check property and income eligibility

The USDA publishes an eligibility map and income limits by county. Many areas just outside major cities qualify. Income limits are based on total household income, not only the borrowers, and allowances for dependents and child care can reduce the counted income.

Send us the address or area you are considering and we will confirm eligibility before you start touring homes.

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How to apply

  1. 1

    Request a call back

    Tell us about your goals. A loan officer will confirm whether this program is the right fit.

  2. 2

    We prepare the application

    We fill out the application with you and send a secure list of documents to upload.

  3. 3

    Approval and closing

    We handle appraisal, underwriting and title, keeping you updated by phone, text or email.

Documents to have ready

  • Pay stubs and W-2s for every adult in the household with income
  • Two years of tax returns if self-employed
  • Two months of bank statements
  • Photo ID and Social Security number
  • Documentation of child care costs or dependents for income calculations

Every file is different. Your loan officer will send an exact list.

USDA Loan FAQs

Have a question that is not answered here? Ask a loan officer.

Is USDA only for farms?

No. USDA loans are for single-family homes in eligible areas, and many suburbs qualify.

Can I buy a second home with USDA?

No. The home must be your primary residence.

Can closing costs be financed?

If the home appraises for more than the purchase price, some closing costs may be included in the loan.

How do I know if my area qualifies?

Send us the address and we will check it against the current USDA eligibility map.

How long does a USDA loan take?

USDA loans require an extra review by the USDA after lender approval, so plan for a slightly longer timeline than conventional financing.

Can I have a USDA loan if I already own a home?

Generally you should not own another adequate home in the same commuting area. We can review your situation.

Talk to a loan officer

Talk with us about a USDA Loan

Tell us a little about your plans. A licensed loan officer will call you, usually the same business day.

  • No cost and no obligation
  • We can fill out the application for you
  • Evening and weekend calls available

Prefer to call? (800) 592-8882

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