The USDA Loan - Not Just for Country Living

A USDA loan is a type of home loan offered by the United States Department of Agriculture (USDA). It is designed to help low- to moderate-income individuals and families buy homes in areas designated as “rural”, particularly in areas where traditional financing may not be available.

One of the main benefits of a USDA loan is that it is 100 percent financing and does not require a down payment for a USDA loan, making it a great option for those who may not have a lot of savings or are unable to come up with a down payment for a traditional mortgage.

But, despite it’s name, the USDA loan isn’t just for buying property in the countryside. In fact, there’s many areas near urban areas that still qualify for the USDA loan.

According to USDA loan guidelines, areas that qualify are areas designated as “rural” according to the latest US Census. Thus, it is based on population of an area. But there are many towns and neighborhoods just outside of urban areas that meet the population qualifications. Or, there are rapidly developing areas that are becoming more urbanized, but haven’t yet been re-designated by the Census.

To see specific areas, check out the map here.

The bottom line is, if you’re looking for a 100 percent financing option, and think you may meet other USDA qualifications, the USDA loan is not one to overlook. Apply today to see if you qualify.