Are there any associated upfront costs with a USDA Loan?

The terms of your USDA Loan include 100% financing, with no required down payment.  However, just like a traditional loan, there are associated closing costs.

To cover the closing costs on your USDA Loan, you can choose to:

  • Pay all or part of the closing costs upfront
  • Have the seller pay for your closing costs
  • Roll the closing costs into the overall loan

Take note that only the difference between the agreed upon contract price and the appraised value of the home can be used to finance the closing costs when seeking a USDA Mortgage, if this is the route you choose.

For answers to your questions, please call the USDA Loan Agency at 866-854-4242 or begin the USDA Loan application process.