USDA  Home Loans

USDA loans are a type of mortgage loan that is guaranteed by the U.S. Department of Agriculture (USDA). USDA loans are designed to help make homeownership more accessible for borrowers in rural and suburban areas. In this guide, we’ll cover some of the key features and benefits of USDA loans

rural area that someone wants to buy a house using a usda loan
Down Payment Options

One of the benefits of a USDA loan is that it allows for a zero down payment. This means that borrowers can purchase a home without having to make a down payment. However, there may be some out-of-pocket costs, such as closing costs and prepaid items, that the borrower is responsible for.


An appraisal is required for a USDA loan to determine the value of the home being purchased. The appraisal is typically conducted by a licensed appraiser and the cost is generally paid for by the borrower. The appraisal helps ensure that the loan amount is appropriate for the home’s value.

Credit Scores Needed

USDA loans are designed to help borrowers with lower credit scores qualify for a mortgage. To be approved for a USDA loan, borrowers typically need a credit score of at least 640.

couple walking in front of their new home
father and daughter playing together after buying home

USDA loans are designed to help borrowers with low to moderate incomes purchase a home. To be eligible for a USDA loan, borrowers must meet certain income requirements, which vary by location and family size. 


USDA loans have several fees associated with them, including an upfront guarantee fee and an annual fee. The upfront guarantee fee is typically 1% of the loan amount and can be rolled into the loan amount. The annual fee is typically 0.35% of the loan balance and is divided into 12 monthly payments that are included in the borrower’s mortgage payment.


USDA loans are designed to help borrowers in rural and suburban areas. To be eligible for a USDA loan, the property being purchased must be located in a designated rural or suburban area. Borrowers can check the USDA’s website to see if the property they are interested in is in a qualifying area.


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Refine Mortgage Inc. NMLS# 2417960 | Refine Mortgage has no affiliation with the US Department of Housing and Urban Development, the US Department of Veterans Affairs, the US Department of Agriculture or any other government agency. Equal Housing Lender. Receipt of application does not represent an approval for financing or interest rate guarantee. Applicant subject to credit, acceptable appraisal, title, and underwriting approval. Not all applicants will be approved. Other terms and conditions apply. Contact Refine Mortgage for more information and up-to-date rates.