How USDA Loans Work

The USDA home loan program, also known as the USDA Rural Development Guaranteed Housing Loan Program, is a mortgage loan offered to rural property owners by the United States Department of Agriculture. USDA loans require no down payment and you may finance up to 100% of the property value. With low upfront and monthly Mortgage Insurance, the USDA Home Loan is a better option than FHA.

Click to watch our 5-minute video explaining the benefits of the USDA Home Loan!


  • Will lend 100% of the purchase price
  • Permits financing of closing costs if the market value is higher
  • 30 Year term with fixed rates
  • Buy a home with┬áZERO down payment
  • No Credit Score limit
  • Lower monthly Mortgage Insurance (MI) and lower upfront MI Funding Fee than FHA Loans.
  • Property must be USDA eligible to qualify. (USDA Loans do not apply to farms.)
  • You can pay off your mortgage at any time without penalty

    USDA Loan Example: USDA Loan for $137,755 for 30-Years with no down payment and a fixed 6.625% interest rate/7.198% APR has a monthly sample payment of $1,166.35 (includes taxes, insurance and mortgage insurance)*

USDA Streamline Refinance is available with no appraisal. Contact Equity Resources for more information.

*Certain restrictions apply. Programs are subject to change without notice. Stated rates and terms are intended as examples only. Call 1-800-270-7082 for current rates and terms