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USDA loans are designed to help moderate-income homebuyers purchase properties with zero down payment in eligible rural and suburban areas. To qualify, your household income must not exceed specific USDA limits based on your area, and the home must be in a USDA-designated location. You can easily verify both income limits and property eligibility using the official USDA eligibility tool. See our USDA loan programs for more.
No. USDA loans are intended for residential properties, not exclusively for farms or agricultural use. Eligible homes are typically located in rural or suburban neighborhoods. These loans are particularly beneficial for buyers looking to live away from dense city centers while still enjoying a community-oriented lifestyle. Learn more at the USDA rural development page or our mortgage basics.
Yes, closing costs can often be rolled into the USDA loan, provided the appraised value of the property exceeds the purchase price. Alternatively, buyers can negotiate for the seller to cover closing costs, minimizing upfront expenses and making homeownership more accessible. Explore this in our closing costs guide or the USDA guaranteed loan program.
USDA loans include an upfront guarantee fee and an annual mortgage insurance premium. However, these fees are generally lower than those of other government-backed loans like FHA, and the upfront fee can typically be rolled into the loan amount, making payments more manageable. Compare this in our PMI guide or the USDA housing assistance page.
To confirm if a home qualifies for USDA financing, you can quickly check property eligibility through the USDA’s online eligibility tool. Simply input the property address to determine its USDA loan eligibility. Visit our USDA loans page for additional insights.