USDA home loans, provided by the United States Department of Agriculture, provide financing with a low-interest, no-down-payment mortgage for homes in eligible rural areas. USDA loans are for low to moderate income households in an eligible rural area of less than 35,000 people.

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USDA Single Family Housing Guaranteed Loan Program

One main type of USDA loans is the USDA Single Family Housing Program. The purpose of this program is to “serve eligible rural residents with incomes below 115 percent of area median income or AMI (see USDA definition in overview) who are unable to obtain adequate housing through conventional financing” (

This USDA loan will have backing from the United States Department of Agriculture. To qualify, there are requirements to keep in mind. To be eligible for this loan you must have a reasonable credit history and dependable income. There are also geographical constraints; USDA loans are only supportive of homes in an eligible rural area. To consider if you and the property are eligible for this program, review this informative brochure on the eligibility and details of the USDA home loan program.

If you want to finance a home with a USDA loan, contact us today to discuss your eligibility and financing options!

General Benefits of a USDA Loan

Below are the benefits of USDA home loans:

  • No Down Payment: Most mortgages require an initial down payment that is paid on closing day. Because of this, many homebuyers say that saving for the down payment was one of the hardest parts of the homebuying process. Since USDA loans require no down payment, purchasing a home with a USDA loan program may be advantageous for those with low down payment funds.
  • Low Credit Score Requirement: USDA’s programs typically require a 640 minimum credit score. Direct Mortgage Loans can lend below 640, but you may need other compensating factors in order to offset the lower credit score. Furthermore, the applicant must prove that they are willing and able to repay their home loan.
  • Low Origination Fee: Borrowers will pay a guaranteed fee of 1% of the total home loan amount. This fee can be financed into the loan so it does not need to be paid out of pocket.
  • USDA Rates: Rates of USDA loans are usually lower than those of typical conventional home loans.

If you want to finance a home with a USDA loan, contact us to discuss your eligibility and financing options! We also have curated a FREE video course on all loan products. Enroll today to learn more about USDA loan programs, and other home financing programs that may make homeownership possible.

Eligibility and approval are subject to completion of an application and verification of home ownership, occupancy, title, income, employment, credit, home value, collateral and underwriting requirements. Direct Mortgage Loans, LLC is licensed in Maryland. Direct Mortgage Loans, LLC NMLS ID# is 832799 ( Direct Mortgage Loans, LLC office is located at 11011 McCormick Rd Suite 400 Hunt Valley, MD 21031. This is a paid endorsement. Equal housing lender.*