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affordable homeownership in rural areas
USDA-backed financing with no down payment required
Backed by the U.S. Department of Agriculture (USDA), this loan helps eligible members purchase a home in designated rural areas with no down payment required. With flexible credit requirements and no maximum purchase price, this option is ideal for those with economic need looking for affordable housing solutions.
United’s Rural Development Loan includes up to 100% financing and is available for new construction and existing homes that meet USDA guidelines. This loan is designed to help members access homeownership without the burden of a large upfront cost.
To find out if a property qualifies as rural under USDA guidelines or to ask questions about this program, our local mortgage advisors are here to help.
Features
- 0% down payment1 – Finance up to 100% of the home’s value
- No maximum purchase price – As long as borrower and property meet USDA guidelines
- Fixed Rate Mortgage – 30-year terms available1
- Available for primary residences – Must meet USDA rural location eligibility
- New construction eligible – Build or buy a home in a qualifying area
- Income and area-based eligibility – Designed to support households with low to moderate incomes
Requirements
- Household income – must meet USDA income guidelines and qualification requirements
- Location – The property must be located in a USDA-approved rural or suburban area.
- Property Type – Single-family, owner-occupied homes only.
- Credit Score & Debt to Income – Must have a minimum 640+ credit score and maximum debt to income ratio of 41%.
Ideal For
A USDA home loan is designed for individuals and families with lower to moderate incomes who cannot qualify for conventional financing and are looking to purchase a primary residence in a USDA-designated rural area.
Frequently Asked Questions
A: A USDA Rural Development Loan is a government-backed mortgage designed to help eligible borrowers purchase a primary residence in designated rural or suburban areas. This program offers up to 100% financing with no down payment required, making homeownership more affordable for low- to moderate-income households.
If you’re unsure whether a USDA loan is right for you, connect with a Mortgage Advisor.
A: USDA loans are available only for homes located in eligible rural or suburban areas defined by the U.S. Department of Agriculture. You can check a property’s eligibility using the USDA's online lookup tool.
Use the USDA Property Eligibility Tool or speak with a Mortgage Advisor for guidance.
A: USDA loans are designed for households with low to moderate incomes. Household income must meet USDA income guidelines, which take into account factors such as household size, allowable deductions, and how income is calculated across all household members.
To check income and property eligibility, use the USDA Income & Property Eligibility Tool or consult a Mortgage Advisor.
A: Yes. USDA Rural Development Loans offer up to 100% financing for eligible borrowers, meaning no down payment is required. You will still need to cover closing costs, which can sometimes be paid by the seller or financed into the loan if the home appraises for more than the purchase price.
A Mortgage Advisor can help you understand your financing options.
A: USDA loans can be used to purchase single-family, owner-occupied homes that meet USDA’s property standards and are located in eligible rural or suburban areas. Manufactured homes and new construction may also qualify if they meet USDA guidelines. Investment properties and second homes are not eligible.
If you're unsure whether your property meets USDA requirements, talk with a Mortgage Advisor.
A: United requires a minimum credit score of 640 for USDA Rural Development Loans. Borrowers must also meet USDA debt-to-income guidelines, which generally require a maximum DTI of 41%.
If you're close to qualifying and want to review your options, a Mortgage Advisor can help.
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Offer and terms subject to change. Loans subject to credit and collateral approval. Rate and term based on individual credit history and program guidelines. Consult a mortgage advisor for more details.
[1] Available on new mortgage applications. Payment example, $250,000 financed for 360 months at a fixed rate of 6.922% APR equals a monthly payment of $1,642.32 . Payment example does not include amounts for taxes and insurance premiums. If applicable, actual payment obligation will be greater. Financing up to 100% of the retail value of the property is available. Up to 360 months financing available. Rate may be increased after consummation. Certain restrictions apply.