USDA 502 Guaranteed Loans

A $0 down, government-backed mortgage for eligible rural and suburban homes, offered through private lenders. See the six requirements, check property eligibility and income limits, then get your official eligibility checked by a lender.

Check eligibility with a lender
Diverse young couple with a real estate agent on a suburban street, looking at a single-family home

USDA Eligibility Requirements

You need to meet all six. Property location and income vary by area. A USDA approved lender confirms the official answer.

Property in a USDA eligible area

The home must be in a USDA designated rural or suburban area. Over 97% of U.S. land qualifies, including many suburbs near major cities. Use the eligibility map to check any address.

Household income at or below the area limit

USDA caps household income at 115% of the area median, with a national floor of $122,800 for 1–4 person households. Every adult in the home counts, not just borrowers. Deductions for dependents and childcare can help.

Primary residence only

The home must be your full-time primary residence. Investment properties and second homes are not eligible. You must intend to occupy the home within 60 days of closing.

Single-family property (1 unit)

USDA Guaranteed loans cover single-unit homes only. Duplexes and multi-unit properties do not qualify, even with owner occupancy. Condos and manufactured homes are eligible under specific conditions. For house-hacking a 2–4 unit property, FHA and VA are the right tools. USDA is not.

U.S. citizenship or qualified alien status

You must be a U.S. citizen, U.S. non-citizen national, or qualified alien. Permanent residents with a green card generally qualify. Your lender will verify documentation.

Credit score 640+ typical

USDA does not set a hard credit floor, but most lenders require 640+ for streamlined approval. Some lenders go lower with compensating factors. Your full credit profile (payment history, DTI, reserves) matters as much as the score.

Connect with a USDA-Approved Lender

Check Property and Income Eligibility

Location and household income are the two checks that vary by area. Use the map and income limits for any ZIP.

Diverse young couple looking at a map of the United States on a laptop

Property Eligibility

Rural and suburban focus

The home must be located in a USDA eligible area. Over 97% of the U.S. landmass qualifies, including many suburbs outside major cities.

Key Details

  • Eligible in many suburbs, not just farms
  • Single-family homes, condos, and PUDs qualify
  • Must be your primary residence
Check property eligibility map
Couple reviewing finances together

Income Limits by Property Location

Moderate income focus

USDA loans are designed for moderate-income households. Your total household income cannot exceed 115% of the area median income (AMI).

Key Details

  • Limits adjust by county and household size
  • Families of 1-4 often cap around $122,800
  • Families of 5-8 often cap around $162,100
Look up your local income limit

USDA vs FHA

Two government-backed programs that both help buyers with limited savings, compared on down payment, credit, DTI, fees, and restrictions. USDA typically costs less long-term than FHA due to lower mortgage insurance if the property is in an eligible area and your income is under the limit.

Feature
USDA$0 down, rural/suburban
FHA580+ credit, 3.5% down
Down payment
$0 (100% financing)
3.5% min (10% if credit 500–579)
Credit score
640+ for automated approval by GUS; lower scores allowed with manual approval
580+ for 3.5% down; 500+ with 10% down
DTI
Guidelines 29/41
Guidelines 31/43; automated files can go higher
Mortgage insurance
1% upfront + 0.35% annual
1.75% upfront + ~0.55% annual (life of loan on most)
Income limits
115% of area median by county
None
Property location
USDA-eligible areas only
Any
Loan limits
None
County limits; lower than conventional
Property use
Primary residence only
Primary residence only
Multi-unit
Single-family only
Up to 4-unit with owner-occupancy
Check Eligibility
Compare FHA rates

More USDA information

Building a home or shopping rates? Construction loans and current USDA averages are below.

New home under construction in a rural area financed with a USDA construction loan

Construction Loans

Build from scratch

You can use a USDA construction-to-permanent loan to build a new home in an eligible area with no down payment required.

Key Details

  • True $0 out of pocket if builder pays closing costs
  • One closing process for construction and permanent loan
  • Finance the lot, construction, and fees together
Explore construction options
Couple meeting with broker, home for sale sign behind them outside

Compare USDA Rates

Competitive government backing

See what rate you might qualify for today. The national average USDA rate is currently around 7.01% APR.

Key Details

  • Rates often beat conventional loans
  • Compare offers from top USDA lenders
  • Government backing reduces lender risk
Compare USDA rates

USDA 30-year fixed rate average

The figure below is a national rate-lock average for 30-year USDA fixed-rate mortgages sourced from Optimal Blue mortgage market data. It is not a personalized quote: your rate depends on your credit, the property location, household income, and the lender you choose.

USDA loans are available in eligible rural and suburban areas with no down payment required. Income limits apply and the property must be in a USDA-designated eligible area—use the USDA eligibility map to check your address before applying.

7.01% APR

Last announced November 10, 2026

Get a personalized rate

Source: OBMMIUSDA30YF on FRED (St. Louis Fed)

USDA eligibility by state

AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming

Frequently Asked Questions

What's the difference between a USDA 502 Guaranteed loan and a USDA 502 Direct loan?

This page is for the Section 502 Guaranteed program. A private lender funds the loan and USDA guarantees it, which is how $0 down works for moderate-income buyers (income typically up to 115% of area median). You apply through a lender, not a government office. Section 502 Direct is a different product: USDA Rural Development is the lender, income limits are lower (often 50–80% of area median), rates can be subsidized, and you apply at a Rural Development office. Direct is not what this site or the form on this page covers. USDA Direct program if that is what you need, or connect with a Guaranteed lender.

What are the USDA loan qualifications?

Six criteria: (1) the property must be in a USDA eligible area, (2) household income at or below the area limit, (3) primary residence only, (4) single-family (1 unit), (5) U.S. citizen or qualified alien, and (6) most lenders look for a 640+ credit score. Property location and income vary by area. See the six requirements, then confirm with a USDA approved lender.

Do USDA loans have lower interest rates?

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.

What is the average USDA loan interest rate?

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. Compare current USDA rates from multiple lenders to see what you might qualify for today.

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

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.

What types of properties are eligible for USDA loans?

USDA loans are for single-family homes that will be your primary residence—no investment or second homes. The property must be in a USDA-eligible area and meet USDA property standards. Check the eligibility map to confirm an address qualifies.

What are the USDA income limits?

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 $122,800 and still qualify. Check income limits by ZIP or the USDA website for your specific area.

What fees does a USDA loan have?

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. For example, on a $250,000 loan the upfront fee is $2,500—added to your loan balance, not paid out of pocket at closing. The 0.35% annual fee works out to roughly $73/month on that same balance.

Can I put money down on a USDA loan, or is 100% financing required?

100% financing is the maximum, not a requirement. You can bring any amount as a down payment if you prefer a lower loan balance or monthly payment. Many buyers choose to finance the full purchase price and keep their savings for moving costs, repairs, or reserves. There is no penalty either way. See if you meet the six USDA requirements →

How long does USDA loan approval take?

USDA loans typically take 30–45 days to close because of a two-step approval process—longer than conventional or FHA. First, your lender handles their portion: ordering the appraisal, completing inspections, and clearing all loan conditions. Once that is done, the file goes to the local USDA Rural Development office for a final commitment—a second-pass review confirming the lender processed everything correctly. The USDA office review can take a few days in less-busy states, or up to two weeks in high-volume states like California, Florida, Texas, and Georgia. Working with a lender who regularly does USDA loans reduces back-and-forth at both steps. Get started with a USDA-experienced lender →