Buy a home with 0% down and save on mortgage insurance with a USDA loan.
Key Benefits of USDA Loans
USDA loans are an attractive option for buying a home in a qualifying rural area – especially if you're a first-time home buyer. These are some of the benefits of USDA loans:
- You can buy a home with no down payment
- You can qualify with a credit score as low as 640
- Your guarantee fees may be lower than FHA mortgage insurance premiums
Start Your USDA Loan Application Today
How USDA Loans Work
USDA loans, also known as rural development loans, are backed by the U.S. Department of Agriculture and provide affordable mortgage options for homes in rural areas.
If you're buying a home, you can get a USDA loan as a 30-year fixed-rate mortgage. If you already have a USDA loan, you can refinance it into a new USDA loan; however, you can't refinance with a USDA loan if you currently have a different loan type.
USDA Loan Eligibility Requirements
To get a USDA loan, you must meet these qualifications:
- Your credit score must be at least 640.
- Your debt-to-income ratio (DTI) must be 50% or lower.
- The property must be in an eligible rural area. Find out if your property is eligible.
- The property must not be a working farm.
- Your household income, which includes everyone in the home, must not exceed 115% of the area median family income. Check your income eligibility with the USDA.
Understanding the USDA Guarantee Fee
USDA loans require an upfront guarantee fee and an annual guarantee fee, similar to upfront mortgage insurance and monthly mortgage insurance for FHA loans. These guarantee fees are generally lower than mortgage insurance premiums for FHA and may save you money on your monthly mortgage payment.
Other Loan Options
If a USDA loan doesn't work for you, these loan options are also available with low down payments and flexible credit requirements:
- FHA Loan – Qualify with a credit score as low as 580 and a down payment as low as 3.5%.
- VA Loan – Take advantage of exclusive benefits for active-duty military personnel, veterans and their families.
- Adjustable Rate Mortgage (ARM) – Get the lowest mortgage rates available. ARMs are a great option if you plan to sell the home or refinance in the next few years.
Why You Should Choose Quicken Loans for Your USDA Loan
- As an approved USDA lender, we’ll guide you through the USDA mortgage process so you understand the details and get the right mortgage for your situation.
- You’ll get a completely online application process with less paperwork, and you can track the status of your mortgage application.
- After you close your loan, you can manage your mortgage online without any hidden fees.
- We service 99% of our mortgages, which means you can expect our great customer service to continue after you close.