USDA Mortgage Guidelines

Learn if You are Eligible for a No Money Down, Low Interest Rate USDA Mortgage

Applying for a USDA Mortgage is easy, and the experts at the USDA Loan Agency are here to make it even easier. Browse the list of USDA Mortgage Guidelines below to learn about some of the qualification requirements.

Guidelines for a USDA Mortgage include:

  • Credit History
    Credit history must indicate a reasonable ability and willingness to meet obligations as they become due. A major influence is paying bills before they become turned over to collections. However, if you have had blemishes in the past, these may be overlooked if you have reestablished your credit over the past 12 months.
  • Property Restrictions
    When an individual or family is seeking a USDA mortgage, the property must be used as the primary residence. However, keep in mind that both new and existing homes are eligible. In addition, there is no restriction placed on the design, size or layout of the home. The prospective property, however, must be declared as safe, sound and sanitary, meeting all the necessary building requirements in the area.
  • Property Locations
    Keep in mind that USDA loan program has nothing to do with farmland. Instead, most rural areas qualify for USDA mortgages. This is generally defined as being located outside of the city limits and within an area with a population of less than 20,000.
  • Income Requirements
    Each county has specific income limits that determine USDA mortgage eligibility, and your current income must not exceed the limit set for that county. While the income limits are based on family size, they are not intended solely for low income families. Instead many low to moderate families can qualify.

Never assume that you do not qualify for a USDA Mortgage. Even if you think that you may fall outside of these guidelines, the USDA Home Loan Agency may still be able to help. We have worked with dozens of families, helping them navigate these sometimes confusing mortgage guidelines.

If you have any questions, call one of our loan experts at 1-866-854-4242, or apply online.

The USDA also offers information. Visit the USDA Loan Eligibility page to learn more.