USDA loans, also called rural development loans, make home ownership more affordable for people in rural and suburban areas with low incomes.

USDA loans are backed by the United States Department of Agriculture, making them easier to obtain than other loan options.

If you have a USDA loan, you can refinance it into a new one. If you have a different loan, you can't refinance with a USDA loan.

A minimum FICO ® Score of 640 is required.

To be eligible for a USDA loan, you must have:

An eligible property is one in a rural or suburban area. Do you qualify?

A household income that is lower than the threshold established by the USDA for the region in which you wish to purchase a home.

With a credit score as low as 640, you may be eligible.

USDA Loan Benefit

In contrast to FHA and conventional loans, USDA loans don't require a down payment.

In most cases, the USDA monthly guarantee fee is less expensive than the FHA monthly mortgage insurance, and you might be able to include these costs in your loan.

Your closing costs might be rolled into your loan.

You can convert an existing USDA loan into a new USDA loan if you already have one.

This can't be a vacation house or an investment property; it has to be your primary residence.

USDA Property Requirement

The property cannot be a farm in operation.

The water, electrical, heating, and cooling systems must be modern and fully functional.

The house and its foundation must be structurally sound. A paved or all-weather road must provide access to the property.

Please click the link below to continue reading about the USDA home loan program if you are interested.