USDA Home Loans

What is the Purpose of the USDA Loan Program?

This program assists approved lenders in providing low and moderate income households the opportunity to obtain financing for a home used as the borrowers primary residence with no money down and very little cost. Eligible applicants may build, rehabilitate, improve or relocate a dwelling in an eligible rural area.

Who is Eligible?

Applicants must:

  • Meet income-eligibility
  • Agree to occupy the dwelling as their primary residence
  • Be a U.S. Citizen or a Permanent Resident Alien
  • Have not been suspended or debarred from participation in federal programs
  • Demonstrate the willingness to meet credit obligations in a timely manner
  • Purchase a property in an eligible area

Map of Eligible Areas:
usda-map

How may funds be used?

Funds backed by loan guarantees be used for:

  • New or existing residential property to be used as a permanent residence.  Closing cost and reasonable/customary expenses associated with the purchase may be included in the transaction
  • A site with a new or existing dwelling
  • Repairs and rehabilitation when associated with the purchase of an existing dwelling
  • Refinancing of eligible loans
  • Special design features or permanently installed equipment to accommodate a household member who has a physical disability
  • Reasonable and customary connection fees, assessments or the pro rata installment cost for utilities such as water, sewer, electricity and gas for which the buyer is liable
  • A pro rata share of real estate taxes that is due and payable on the property at the time of loan closing.  Funds can be allowed for the establishment of escrow accounts for real estate taxes and/or hazard and flood insurance premiums
  • Essential household equipment such as wall-to-wall carpeting, ovens, ranges, refrigerators, washers, dryers, heating and cooling equipment as long as the equipment is conveyed with the dwelling
  • Purchasing and installing measures to promote energy efficiency (e.g. insulation, double-paned glass and solar panels)
  • Installing fixed broadband service to the household as long as the equipment is conveyed with the dwelling
  • Site preparation costs, including grading, foundation plantings, seeding or sod installation, trees, walks, fences and driveways