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Question 1

What is a USDA loan?

Accepted Answer

A USDA loan is a zero down payment mortgage backed by the U.S. Department of Agriculture for buyers in eligible rural and suburban areas. It has competitive rates and doesn't require any money down. Despite the "rural" label, over 97% of U.S. land area qualifies, including many suburbs near major cities.

Question 2

Do I qualify for a USDA loan?

Accepted Answer

Eligibility depends on two main factors: income and location. Your household income generally can't exceed 115% of the area median income, and the property must be in a USDA-eligible area. A licensed broker can check both for you in minutes.

Question 3

What credit score do I need for a USDA loan?

Accepted Answer

USDA doesn't set a hard minimum, but most lenders use 580 as a floor—640+ gets you streamlined, faster approval. A broker can help you understand your options.

Question 4

Will filling out this form affect my credit score?

Accepted Answer

No. Filling out this form does not run a credit check. You self-report your credit score. A licensed broker will share advice based on their experience, walk you through your options, and help you decide next steps. If you'd like to move forward, they'll verify what you've reported—that's when a credit check happens.

Question 5

Is there mortgage insurance on a USDA loan?

Accepted Answer

USDA loans don't have traditional PMI, but they do have a guarantee fee: 1% upfront (usually rolled into the loan) and 0.35% annually. These fees are typically lower than FHA or conventional PMI, which is part of what makes USDA loans affordable.

Question 6

Can I buy in the suburbs with a USDA loan?

Accepted Answer

Yes. Many suburban communities on the edges of cities qualify. Use the USDA eligibility map or ask your broker to check a specific address. You might be surprised how many areas are eligible.

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