Question 1

What are the USDA loan qualifications?

Accepted Answer

In brief:

The property must be in a USDA-eligible area (rural or many suburbs).
It must be your primary residence—no investment or second homes.
Your household income must be at or below the limit for your county (typically 115% of area median income).
You must be a U.S. citizen, U.S. non-citizen national, or qualified alien.
You need to meet ability-to-repay and credit guidelines; many lenders look for a 640+ credit score.

For full eligibility rules, income limits, and how to apply, see the USDA Single Family Housing Guaranteed Loan Program and the USDA eligibility map.

Question 2

Do USDA loans have lower interest rates?

Accepted Answer

USDA loans often have competitive rates because they're backed by the federal government, which reduces risk for lenders. In many cases, USDA rates can be comparable to or slightly better than conventional rates for eligible borrowers, especially when you factor in no down payment and no private mortgage insurance. Your actual rate still depends on your credit, income, and the lender—so it's worth comparing USDA quotes with other loan types.

Question 3

What is the average USDA loan interest rate?

Accepted Answer

The average USDA loan interest rate moves with the broader mortgage market and is often close to conventional rates—sometimes a bit lower because the loan is government-guaranteed. Exact averages change weekly; your rate will depend on your credit score, loan term, and the lender. Use the rate table above to compare current USDA rates from multiple lenders and see what you might qualify for today.

Question 4

How do I know if a property is in an eligible USDA area?

Accepted Answer

Use the USDA eligibility map to check addresses. Generally, areas with populations under 35,000 qualify, including many suburbs near larger cities. You might be surprised how many areas are eligible.

Question 5

What are the USDA income limits?

Accepted Answer

Income limits vary by county and household size, typically capping at 115% of area median income. A family of four in most areas can earn up to $100,000-$115,000 and still qualify. Check the USDA website for your specific county limits.

Question 6

What fees does a USDA loan have?

Accepted Answer

USDA loans require a 1% upfront guarantee fee (rolled into the loan) plus an annual fee of 0.35% of the loan balance. This is significantly less expensive than FHA mortgage insurance premiums.

Question 7

How long does USDA loan approval take?

Accepted Answer

USDA loans typically take 30-45 days to close, slightly longer than conventional loans due to additional USDA approval steps. Working with an experienced USDA lender can help streamline the process.

USDA Loan Rates for Feb 9, 2026

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