Buyers in qualifying areas may be able to finance a home with no down payment.
USDA loans are backed by the U.S. Department of Agriculture for eligible rural and certain suburban properties. They may allow qualifying borrowers to purchase with no down payment — depending on location, income, and credit.
What to expect
A process built to keep the next step clear.
Royal United starts by confirming property location eligibility and household income, then moves through application, appraisal, and underwriting — including the USDA approval step — with one advisor keeping each stage organized.
Step 1
Confirm location and eligibility
The first step is verifying that the property is in a USDA-eligible area and that household income falls within USDA limits for that location.
- 1.Verify property is in a USDA-designated eligible area
- 2.Confirm household income relative to area income limits
- 3.Review goals and compare USDA against other loan options
Step 2
Move through application and underwriting
Once eligibility is confirmed, the process moves through application, appraisal, and underwriting — including the USDA conditional commitment step.
- 1.Sign the application electronically
- 2.Complete the appraisal and required property review
- 3.Provide documentation and complete underwriting
Step 3
Close and take ownership
The final stage confirms USDA approval, reviews the guarantee fee structure, and coordinates a clear closing process.
- 1.Receive USDA approval and confirm the closing date
- 2.Review final loan terms including guarantee fee structure
- 3.Sign closing documents and take possession of the home
Program benefits
What USDA financing may offer.
General information only. Actual eligibility and benefits depend on property location, household income, credit, and the full application.
No down payment for qualifying borrowers
USDA loans may allow eligible buyers in designated areas to finance 100% of the purchase price — reducing the upfront cash needed to close.
Rural and select suburban properties
USDA eligibility covers a broader range of locations than many buyers expect — not limited to farms or remote rural areas. Specific eligibility depends on USDA maps.
Fixed-rate financing available
USDA fixed-rate loans provide predictable principal and interest payments for the life of the loan for eligible borrowers.
Who this may be a fit for
USDA financing may benefit buyers in qualifying situations.
Fit depends on property location, household income, credit, and your goals. A loan advisor can help confirm whether you and your target property may qualify.
Buyers in rural or suburban areas
USDA eligibility is tied to property location. Many buyers in smaller towns and certain suburban areas may qualify — depending on USDA designation maps.
First-time buyers with limited savings
The no-down-payment structure may help first-time buyers close without a large upfront cash requirement — depending on location and income eligibility.
Income-qualifying borrowers
USDA income limits apply based on household size and area. Borrowers within the qualifying thresholds for their location may benefit from this program.
Not a guarantee of eligibility or approval. USDA loan eligibility is subject to property location, income limits, and credit qualification requirements.
What our clients say
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Frequently asked questions
Common questions about USDA loans.
What properties qualify for a USDA loan?
USDA loans apply to properties in designated rural and certain suburban areas as defined by USDA eligibility maps. The property must be a primary residence, must meet minimum property standards, and must be in an area that the USDA determines as eligible. Eligibility can be checked using USDA's official mapping tool.
Are there income limits for USDA loans?
Yes. USDA loans have household income limits based on area median income for the property's location and household size. Income limits are set by the USDA and vary by county. A loan advisor can help you determine whether your household income qualifies.
Do USDA loans require a down payment?
USDA loans may allow qualifying borrowers to purchase with no down payment. The program is designed to provide 100% financing for eligible buyers in eligible areas, subject to income limits and property requirements.
What is the USDA guarantee fee?
USDA loans include an upfront guarantee fee — typically a percentage of the loan amount — and an annual fee paid in monthly installments. The guarantee fee helps sustain the USDA program. Specific amounts are set by USDA guidelines and may change annually.
Can I use a USDA loan for a fixer-upper or investment property?
USDA loans are limited to primary residences that meet USDA property condition requirements. They may not be used for investment properties or vacation homes. Fixer-uppers may qualify only if they meet minimum property standards at the time of closing.
How long does USDA loan approval typically take?
USDA loans require an additional approval step from the USDA itself, which can add time to the overall process compared to conventional loans. Timeline varies by USDA processing volume and the completeness of the application file.
General information only. Not financial, legal, or tax advice. USDA loan eligibility is subject to USDA program requirements and lender guidelines.
Want to know if USDA financing fits?
Want to know if USDA financing fits your situation?
A Royal United loan advisor can help you check location eligibility, review income limits, and compare USDA against other options based on your goals.