609-933-1700
USDA Loans
Zero down. Low rates. No catch. USDA loans make homeownership possible in eligible rural and suburban areas—and more neighborhoods qualify than you'd think.
Who Is This Loan For?
-
✅ Homebuyers purchasing in USDA-eligible areas (rural and many suburban neighborhoods)
-
✅ Low-to-moderate income buyers who want zero down payment
-
✅ First-time homebuyers looking for the most affordable path to ownership
-
✅ Buyers who don't qualify for VA loans but want $0 down
-
✅ Families in smaller towns, developing suburbs, and rural communities in FL, NJ & PA
What Is a USDA Loan?
A USDA loan is a mortgage backed by the U.S. Department of Agriculture through its Rural Development program. Despite the name, you don't need to live on a farm—many suburban neighborhoods qualify.
The big benefits:
-
$0 down payment — 100% financing, just like VA loans
-
Below-market interest rates — often lower than conventional or FHA
-
Low mortgage insurance — significantly cheaper than FHA
-
Flexible credit — no hard minimum score (most lenders want 620+)
-
Closing costs can be financed — roll them into the loan or have the seller pay
The catch? There are two eligibility requirements:
-
The property must be in a USDA-eligible area
-
Your household income must be at or below 115% of the area median income
More areas qualify than you'd expect. Many suburbs of major cities in Florida, New Jersey, and Pennsylvania are eligible. We'll check your address instantly.
USDA Loan Requirements
Location Eligibility
The property must be in a USDA-designated eligible area. You can check any address on the USDA eligibility map. Many areas that feel suburban—not rural—qualify. We'll verify this for you before you start house hunting.
Income Limits
Your total household income (everyone living in the home, not just borrowers) must be at or below 115% of the area median income. Limits vary by county and household size. Examples:
Area 1–4 Person Household 5–8 Person Household
Most FL counties ~$103,500 ~$136,600
Most NJ counties ~$120,000+ ~$158,400+
Most PA counties ~$103,500 ~$136,600
Limits updated annually. We'll confirm the exact limit for your county.
Credit Score
USDA has no official minimum. Most lenders require 620+. Below 640 may require manual underwriting (more documentation, but still possible).
Down Payment
$0 — zero down payment required. You can put money down if you want, but it's not required.
DTI Ratio
-
Front-end (housing): 29% of gross income
-
Back-end (total debt): 41% of gross income
-
Can go higher with compensating factors (strong credit, cash reserves, etc.)
Mortgage Insurance
USDA charges two fees (both much lower than FHA):
-
Upfront guarantee fee: 1% of loan amount (rolled into the loan)
-
Annual fee: 0.35% of loan balance (added to monthly payment)
Compare that to FHA's 1.75% upfront + 0.85% annual — USDA saves you significantly.
Property Requirements
-
Primary residence only — no investment properties or vacation homes
-
Must be in a USDA-eligible area
-
Must meet basic safety and livability standards
-
Single-family homes, townhomes, condos, and some manufactured homes
VA Loan Benefits at a Glance
The USDA Loan Process
Step 1 — Verify Eligibility
We verify two things instantly: (1) Is your target area USDA-eligible? (2) Does your household income fall within limits? Takes 5 minutes.
Step 2 — Pre-Approval
We review income, credit, and debts. You'll get a pre-approval letter to start shopping. Turnaround: 1–2 business days.
Step 3 — Home Search Find your home.
Find a home in a USDA-eligible area. We'll confirm eligibility on any address you're considering before you make an offer.
Step 4 — Appraisal & Underwriting
TStandard appraisal plus USDA-specific review. The file goes through both lender underwriting AND USDA approval. Timeline: 3–4 weeks (USDA review adds a bit of time).
Step 5 — Closing
Sign the papers, get the keys. The upfront guarantee fee is rolled into the loan—no extra cash needed. Total timeline: 30–50 days.
Frequently Asked Questions
Do I have to live in a rural area?
No. "Rural" is misleading—many suburban neighborhoods qualify. Areas just outside major cities in FL, NJ, and PA are often eligible. The USDA map is the definitive source, and we'll check any address for you.
What counts as "household income"?
Everyone 18+ living in the home, whether or not they're on the loan. This includes a spouse who isn't borrowing, adult children living at home, and other household members. Certain deductions (childcare, disability, elderly household members) can reduce the counted income.
Can I buy a fixer-upper with USDA?
The home must be move-in ready and meet basic safety standards. Major repairs (roof, foundation, plumbing) typically need to be completed before closing. For a true fixer-upper, consider a Construction Loan or FHA 203(k).
Is there a maximum loan amount?
No set maximum. The loan amount is limited by what you qualify for based on income and debts. However, since USDA targets moderate-income buyers, loan amounts tend to be moderate as well.
Can I use USDA for a manufactured home?
Yes, in some cases.
Explore Other Loan Options
FHA Loans → Low down payment and flexible credit. Great for first-time buyers.
DSCR Loans → Qualify on rental income. Built for investors.
Bank Statement Loans → Self-employed? Use your deposits to qualify.
You've Earned This Benefit. Let's Use It.
Whether you're buying your first home or your fifth, your VA loan benefit is one of the most powerful financial tools available. Let's put it to work.
Malik Shalmiyev · NMLS #1542149
Team Malik Mortgage · Rize Mortgage (Standard Mortgage Capital LLC, NMLS #1604663) Licensed in FL, NJ & PA