Mortgage glossary
USDA loan
Definition: A USDA loan is a mortgage guaranteed by the U.S. Department of Agriculture for homes in eligible rural and suburban areas, offering no down payment financing to buyers within household income limits.
USDA guaranteed loans require the home to be the borrower's primary residence in a USDA eligible area, and total household income must fall within limits for the county and household size. The program charges an upfront guarantee fee and an annual fee paid monthly.
Eligibility maps change over time, and some communities on the edges of the Austin metro may qualify while most of the city does not. Check a specific address before assuming. Through our team, USDA starts at a minimum score of 580, and manual underwriting is allowed.
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Reviewed by Kyle Richardson, NMLS #863464. General information, not advice for your specific situation. All glossary terms
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