USDA loans are guaranteed by the U.S. Department of Agriculture's Rural Development program to help low- and moderate-income households buy homes in eligible rural and some suburban areas, with no down payment.
Eligibility
- Location. The property must be in a USDA-designated eligible area. Much of Los Angeles County is not eligible, but parts of northern Los Angeles County and neighboring counties are. We can check an address for you.
- Income. Household income must be at or below the USDA limit for the county and household size.
- Occupancy. Primary residences only.
- Credit. Flexible guidelines, including some use of non-traditional credit such as rent and utility history.
Terms
- No down payment required.
- 30-year fixed rate.
- An upfront guarantee fee, which can be financed, and a small annual fee, both lower than FHA mortgage insurance.
- Seller contributions and gift funds are allowed toward closing costs.