The USDA determines what “rural” means, and that varies widely by state. But if you’re eligible, you can qualify for lower monthly payments and you don’t need money for a down payment. You’ll also spend less time in traffic driving to the closing.
Key Features of Rural Housing (USDA) Loans
- Available as a 30-year option with a fixed rate
- Finance 100% of your home with no down payment requirement
- No mortgage insurance means you have lower monthly payments
- The loan’s income eligibility cap varies by community
Requirements
| Down Payment | None |
| Terms | 30 years, fixed rate |
| Credit Score | 640 minimum |
| Mortgage Insurance | No* |
| Maximum Loan Limit | Yes, varies by county |
| *Up-Front Guarantee Fee financed into the loan. | |