start portlet menu bar

Web Content Viewer

end portlet menu bar

USDA Loans

Buy a home with a USDA loan.

USDA Home Purchases

  • Competitive USDA interest rates
  • No down payments for many homebuyers
  • Low mortgage guarantee fees
  • No loan limits
  • Minimum credit score often 640
  • Rural and suburban homes can be eligible
Call 888-369-3719 Get Started Online
 

USDA Refinances

  • Competitive USDA interest rates
  • Hassle-free process with less paperwork and faster closings
  • Easy credit score qualification
  • Low guarantee fees
Learn More
 
  • A USDA loan is a mortgage offered by private lenders and backed by the United States Department of Agriculture (USDA). USDA loans make buying or refinancing a home more affordable in rural and some suburban communities.

    To be eligible for a USDA loan, the property must be located in an approved community. You can check whether a home is eligible using the USDA's loan map. You will also need to meet credit, income, and financial requirements to get your loan application approved.

    FILTERS
    Loans Eligibility Minimum Credit Score Minimum Down Payment Upfront Insurance/Fees Monthly Insurance/Fees
    USDA Loans Rural and some suburban
    homebuyers only
    Often 640 Often 0% Yes Yes
    Conventional Loans All homebuyers Often 620 Often 5% No None with at least 20% equity
    FHA Loans All homebuyers Often 550 As low as 3.5% Yes Yes
    VA Loans Veterans, military personnel,
    surviving spouses only
    Often 550 Often 0% Yes No
  • USDA loans make financing a home more affordable. They have competitive interest rates, no required down payment for many homebuyers, and low guarantee fees. There are no loan limits, although there are income limits that may affect your eligibility for a USDA loan. There are no prepayment penalties. Refinancing a USDA loan can be easier with the Streamline program, too.

    USDA loan guarantee fees are often lower than the mortgage insurance premiums you'll pay with an FHA loan. However, USDA loans often have higher minimum credits scores than FHA loans. Learn more about the differences between FHA loans and USDA loans.

  • To get approved for a USDA loan, the home you want to buy or refinance must be located in an eligible rural or suburban community. You'll also need to meet our credit, income, and financial requirements. These requirements include:

    • Applying for a USDA loan. You'll have to fill out a mortgage application and submit credit, income, and financial documents that demonstrate that the information on the application is correct.
    • Meeting the minimum credit score. You typically need a credit score of 640 or higher to get approved for a USDA loan. 640 is the credit score Freedom Mortgage often requires.
    • Meeting the income limits. The USDA loan program is limited to borrowers whose household income does not exceed a certain amount. These limits vary by state and country. To find out if your household income makes you eligible, visit the USDA income eligibility page.
    • Financing a primary residence. You can only buy or refinance a primary residence with USDA loans. This is the home where you live most of the time. You can't use USDA loans to finance a second home, rental house, or investment property.
    • Passing a USDA home appraisal. You'll need a home appraisal to make sure the property you want to buy meets USDA requirements. This includes ensuring the home is safe and in good condition. The appraisal will also look at comparable homes in the area and compare their value.
    • Paying the USDA guarantee fee. Guarantee fees are a type of mortgage insurance for USDA loans. The upfront guarantee fee is 1% of the loan amount. You typically pay this fee as part of your closing costs. There is also an annual fee of 0.35% of the average annual unpaid principal balance. You will pay this annual guarantee fee for the life of the loan.
    • Paying closing costs. USDA loan closing costs can include lender fees, discount points, homeowners insurance, property taxes, and title fees, as well as the upfront guarantee fee.
    • Having one USDA loan at a time. You are typically limited to buying or refinancing one home at a time with a USDA loan.

    Although you aren't required to make a down payment to buy a house with a USDA loan, making a down payment might make sense for you. Making a down payment reduces the amount of your mortgage principal and can help you lower the cost of your interest payments.

  • The USDA loan map is an interactive map on the United States Department of Agriculture's website that allows you to research properties that may be eligible for USDA loans. You can enter the street address, city, and state of a property in the search box to determine if it is eligible for financing.

    Note that the USDA states that the map's results do not guarantee a home will be eligible for a USDA loan. The final eligibility will be established after you complete your mortgage application. To research homes, visit the USDA loan map page.

  • The USDA rate we may be able to offer is personal to you. Your interest rate is affected by the type of loan you want, your credit score, your income and finances, as well as the current mortgage market environment. Freedom Mortgage may be able to offer you a rate that is lower—or higher—than the rate you see advertised by other lenders. Ask us today about the USDA loan rate we can offer you. Call a Loan Advisor at 877-220-5533.

Home affordability calculator

How much home can you afford?

When you’re thinking about buying a home, figuring out how much you can afford is a great first step. Use our home affordability calculator to get an estimate!

All fields are required.


$

$

$


%

$
This calculator is made available as a self-help tool for your personal use. We do not guarantee its accuracy or applicability to your individual circumstances. Resulting calculations are for illustrative and informational purposes only and are not intended as investment or financial advice. Consult a qualified financial advisor before making important personal finance decisions. To get a better understanding of the benefits of buying a home, speak with a loan advisor at Freedom Mortgage.

Based on the values you provided, you may be able to afford a home worth up to $270,000

Get your calculator results delivered to your email

Let us help you save more on your mortgage each month by lowering your interest rate. Fill out the form below and one of our licensed Loan Advisors will contact you.

All fields are required. Reset Calculator Results


Please enter valid first Name

Please enter valid last name

Please enter valid email

Please enter valid phone
Please select valid state
Please select valid loan type
Please select valid current customer

Do you know the address you are looking to purchase?

Please select yes or no

Please enter valid city

Please enter valid zip code

$
Please enter valid withdrawal amount
* This calculator is made available as a self-help tool for your personal use. We do not guarantee its accuracy or applicability to your individual circumstances. Resulting calculations are for illustrative and informational purposes only and are not intended as investment or financial advice. Consult a qualified financial advisor before making important personal finance decisions. To get a better understanding of the benefits of refinancing, speak with a loan advisor at Freedom Mortgage.

A loan advisor from Freedom Mortgage will reach out to you to review your results and discuss the request for a cash out refinance on your home’s equity.

By entering your mobile number and email address and clicking “Get Your Results” below, you consent to be contacted, including via automated technology, by Freedom Mortgage and any of its current or future affiliated companies (collectively “Freedom Mortgage”) at that mobile number and email address for marketing purposes. You affirm that you are the subscriber of the phone number(s) and email address or that the subscriber has authorized you to provide this consent. Your consent is not a condition of purchase of goods or services from Freedom Mortgage. You can revoke your consent at any time by contacting Freedom Mortgage at 855-690-5900.
green checkmark in the center of a green circle.Your results have been emailed to you. A loan advisor will reach out to you soon.

Based on the values you provided, you may be able to afford a home worth up to $270,000