Buy a home in eligible rural and suburban areas with 0% down payment. Government-backed financing for moderate-income families.
Government-backed financing for rural homeownership
Buy a home with 0% down payment, making homeownership accessible without large upfront costs.
Access competitive interest rates, often lower than conventional loans, thanks to government backing.
More lenient credit requirements with manual underwriting available for unique situations.
Use gift money from family members for closing costs and other expenses.
Pay off your loan early without any penalties, saving you money on interest.
Include necessary repairs and improvements in your loan amount up to certain limits.
Property and borrower eligibility for USDA financing
Property must be in USDA-eligible rural or suburban area
Must be your primary residence, not investment or vacation property
Must meet USDA property standards for safety and livability
*Income limits vary by county. These are general guidelines for most counties.
Minimum 640 credit score preferred, lower scores considered with compensating factors
Maximum 41% DTI ratio, including the new mortgage payment
Stable employment history with 2+ years in same field preferred
Must be U.S. citizen or qualified alien with permanent residency
Most rural areas qualify for USDA loans, including small towns and agricultural communities.
Many suburban areas outside major cities also qualify, depending on population density and local regulations.
Areas with populations under 35,000 typically qualify, with some exceptions for areas up to 50,000.
Steps to secure your USDA loan
We'll check property location, income limits, and your qualifications for USDA financing.
Complete your application and receive conditional approval to show sellers you're ready to buy.
Shop for homes in USDA-eligible areas within your approved loan amount.
USDA reviews and approves the loan, which typically takes 30-60 days from application.
Common questions about USDA loans
We can check property eligibility using the USDA's online eligibility map. Most rural and many suburban areas in Alabama qualify.
Yes, there's an upfront guarantee fee of 1% of the loan amount, which can be rolled into the loan. There's also an annual fee of 0.35%.
USDA loans typically take 30-60 days to process due to the additional government review required.
Yes, USDA offers streamlined refinancing options for existing USDA borrowers, and you can also refinance to conventional loans.
If you exceed USDA income limits, consider FHA loans (3.5% down) or conventional loans with as little as 3% down.
Don't let location limit your homeownership dreams. See if you qualify for 0% down USDA financing today.
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