The USDA Single Family Housing Guaranteed Loan Program provides zero-down-payment mortgages for eligible rural and suburban homebuyers — but eligibility depends on both property location and household income. This guide walks through every eligibility requirement, shows how income limits work by family size, and explains the step-by-step process to get USDA-approved.
Down payment required — USDA provides 100% financing for eligible buyers
Approximate percentage of US land area that is USDA property-eligible
Maximum household income as a percentage of area median income (AMI)
Typical minimum credit score required by USDA lenders (program has no official minimum)
USDA income limits are based on household income (all adults in the home, not just the borrower) compared to the Area Median Income (AMI) for your specific county. The limit is 115% of AMI — and it varies significantly by location and family size.
USDA counts ALL adults' income in the household — not just the borrower's. A spouse who isn't on the loan, a working adult child living in the home, or any other adult household member's income counts toward the 115% AMI limit. This catches many applicants by surprise.
| Family Size | Low-Cost Area | Moderate Area | High-Cost Area |
|---|---|---|---|
| 1–4 persons | ~$90,000 | ~$110,000 | ~$151,000 |
| 5–8 persons | ~$118,000 | ~$145,000 | ~$199,000 |
Income limits vary significantly by county. Always check your specific county's current limits at eligibility.sc.egov.usda.gov — these figures are illustrative examples only and change annually.
Visit eligibility.sc.egov.usda.gov and select "Single Family Housing." Enter any specific address to instantly see if the property is in an eligible area. The map is official and current.
Many suburban communities outside major metro areas are USDA-eligible. Towns of 10,000–35,000 people are often eligible if they're not part of a large Metropolitan Statistical Area. Always check the map — don't assume.
At the same eligibility site, check income limits for your county and family size. Remember: ALL household adults' income counts. If your household income is under the limit, you're eligible on the income side.
Not all lenders offer USDA loans. Search for USDA-approved lenders in your area — many local community banks, credit unions, and mortgage companies participate. USDA loans are processed through these private lenders, not directly through USDA.
Zero down — 100% financing of purchase price
Can be rolled into loan. Lower than FHA's 1.75%
Monthly. Can cancel when LTV reaches 80%. Lower than FHA MIP
USDA rates are typically comparable to FHA or slightly better
USDA income limits are set at 115% of the Area Median Income (AMI) for your specific county and family size. The limits vary significantly by location — from around $90,000 in low-cost rural areas to $151,000+ in high-cost markets for a family of 1–4. Check your exact county limits at eligibility.sc.egov.usda.gov.
USDA has no official minimum credit score, but lenders typically require 580–640. The USDA automated underwriting system (GUS) may approve scores of 640+ automatically; lower scores may require manual underwriting with additional compensating factors.
Yes — USDA accepts lower credit scores than conventional loans and has no official minimum. Scores of 580–620 may qualify with manual underwriting and compensating factors (stable employment, minimal other debt, significant assets). Bad credit from past hardship is evaluated in context, not just as a number.
Approximately 97% of US land area is USDA-eligible, but only about 19% of the US population lives in eligible areas. USDA-eligible areas include small towns, rural communities, and many suburban areas outside major metro centers. Check any specific address at the USDA eligibility map at eligibility.sc.egov.usda.gov.
Generally no — USDA loans are for primary residences and the program typically requires that you don't currently own an adequate home. However, some exceptions exist (home is inadequate for household size, home is in a different area, etc.). Check with a USDA-approved lender for your specific situation.
Our complete guide covers every no-down-payment and low-down-payment home loan option for bad credit buyers.
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Calculate your USDA payment
⚠ Disclaimer: USDA income limits, eligible area maps, and program requirements change annually. Verify current eligibility at eligibility.sc.egov.usda.gov or through a USDA-approved lender. Not financial advice. See our Disclaimer and Privacy Policy.