Home / USDA Loans
Rural and suburban homebuyers
Many small towns and suburbs across Alabama and Florida qualify. If yours does, you can buy with nothing down and a low annual fee.
A USDA loan is a mortgage guaranteed by the U.S. Department of Agriculture's Rural Development program. It helps moderate-income buyers purchase a primary home in eligible areas with no down payment.
Eligible areas are wider than most people expect. Many communities in Baldwin and Mobile counties, towns around Birmingham, and parts of Northwest Florida qualify even though they feel suburban.
Look up the address on the USDA eligibility map, or send it to Brian and get an answer the same day.
The official map is at eligibility.sc.egov.usda.gov. Boundaries change from time to time, so it is worth checking each address before you fall in love with a house.
Total household income generally cannot exceed 115% of the area median income. The limit counts income from every adult living in the home, not just the borrowers.
Limits vary by county and household size, and certain deductions, such as childcare expenses and dependents, can lower the income that counts against the limit.
USDA's 0.35% annual fee is usually lower than FHA mortgage insurance and lower than PMI on a small conventional down payment, which often makes USDA the lowest monthly payment for buyers who qualify.
The 1% upfront guarantee fee is typically rolled into the loan, so you do not need extra cash at closing.
Calculator
Estimates only. Your actual rate, APR, and payment depend on credit, loan amount, property, and market conditions. PMI is estimated at 0.6% per year when a conventional down payment is under 20%.
Is this a fit?
Be ready
Questions people ask
USDA does not set a minimum score, but 640 or higher usually qualifies for faster automated approval. Lower scores may still work with manual underwriting.
Yes, as long as the land value is typical for the area and the property is not an income-producing farm.
No. You do not have to be a first-time buyer, but you generally cannot own another adequate home nearby at the time you close.
Yes. USDA loans can finance a newly built home from a builder, and some programs combine construction and permanent financing.
USDA loans need a final review by Rural Development, so plan on about 30 to 45 days from contract to closing. Starting your application early helps.
Send us the home you have in mind and we'll confirm USDA eligibility the same day.
Compare
Fixed-rate loans with as little as 3% down for first-time buyers.
Learn more →Veterans$0 down and no monthly mortgage insurance for those who served.
Learn more →Rental propertyQualify with the property's rent instead of your tax returns.
Learn more →Home equityBorrow against your equity and keep your current mortgage rate.
Learn more →