USDA Home Loans
Buy a home with no down payment in eligible rural and suburban areas.
What is a USDA Home Loan?
A USDA home loan is a government-backed mortgage program designed to help eligible buyers purchase a home with no down payment. USDA loans are available in many communities. This loan program can be a great option for first-time homebuyers or any buyers looking for a more affordable path to homeownership.
USDA loans help make owning a home more affordable for qualified buyers!
Why Buyers Choose USDA Loans
- No Down Payment Required
- Competitive Interest Rates
- Flexible Credit Guidelines
- Low Monthly Mortgage Insurance
- Available in Many Rural & Suburban Areas
- Great Option for First-Time Buyers
Could a USDA Loan Be Right for You?
USDA loans, sometimes referred to as Rural Housing Service (RHS) loans or USDA Rural Development Loans, are designed to help eligible buyers purchase homes in qualifying rural and suburban communities. They’re especially popular among first-time homebuyers and buyers looking for an affordable path to homeownership.
A USDA loan may be a great option if you:
- Don’t have a large down payment saved
- Want to keep more money in savings after closing
- Aren’t sure if your credit is good enough to buy a home
- Are buying in a small town or suburban area
- Want an affordable monthly payment
- Are purchasing a primary residence
What are the requirements for a USDA Loan?
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Income Limits
In order to qualify for a USDA Loan, your total annual household income cannot exceed the program limits.
The 2026 annual household limit for most areas of Ohio, Indiana, Kentucky, and Florida is $119,850 (household size of 1-4) and $158,250 (household size of 5-8).
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Property Eligibility
You are purchasing a property that is located in an eligible rural area.
Many suburban and small-town areas qualify for USDA financing — not just farmland or remote rural locations.
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Credit Score
Credit requirements can vary, but many buyers are surprised to learn they may qualify sooner than they expected.
Buyers without a credit score may qualify with additional requirements.
Did you know?
Don’t let the name fool you, USDA home loans are NOT farm loans and this program is not limited to “country” homes!
Most towns with a population of 10,000 or less are typically considered rural. Some towns with a population of 25,000 or less are rural as well. There are many areas across the country where entire counties are eligible.
Contact us today for more information about eligibility in your specific area.
Do USDA Loans Cover your Area?
KTL Performance Mortgage helps homebuyers explore USDA financing options throughout Ohio, Indiana, Kentucky, and Florida, including many small towns and suburban communities that may qualify.
To learn more about your area, contact us today.
Can USDA Loans Be Used for Home Renovations?
In some cases, USDA financing may be used to purchase and improve a home at the same time. USDA renovation loan options can help eligible buyers finance certain repairs, updates, or improvements as part of their mortgage.
This can be especially helpful for buyers who find a home in the right location that may need repairs, renovations, or even cosmetic updates.
How USDA Loans Compare
Every homebuyer’s situation is different, and USDA loans are just one of several financing options available.
Depending on your goals, location, down payment, and credit profile, an FHA loan or Conventional loan may also be worth exploring.
Our team can help you compare the pros and cons of each option to determine which program may be the best fit for your needs.
| Feature | USDA | FHA | Conventional |
|---|---|---|---|
| Minimum Down Payment | 0% | 3.5% | 3-5% |
| Income Limits | Yes | No | No |
| Geographic Limits | Yes | No | No |
Frequently Asked Questions About USDA Loans
No. USDA home loans offer 100% financing for eligible buyers, which means no down payment is required. This can make USDA loans a great option for buyers who may not have a large amount saved for upfront costs.
No. USDA loans are available to both first-time and repeat homebuyers. However, the home must be used as your primary residence, and buyers must meet USDA income and property eligibility requirements.
USDA loans are available in many rural and suburban areas. Many buyers are surprised to learn that eligible areas can include small towns, suburban communities, and areas outside major city limits — not just farmland or remote rural locations.
You can access the USDA’s property eligibility lookup tool here.
You may be able to, depending on the area. Many suburban communities may qualify for USDA financing. Eligibility is based on USDA property maps and location requirements. Our team can help you determine whether a property may qualify.
USDA does not set a strict minimum credit score requirement, but lenders may have their own guidelines. Credit history, income, debt, and overall financial profile are all considered during the approval process. Many buyers are surprised to learn they may qualify sooner than they expected.
Yes. USDA loans are designed for low-to-moderate income households, so income limits apply based on household size and location. Income limits can vary by county and are updated periodically.
Yes. USDA offers refinancing options for eligible homeowners, including programs that may help lower monthly payments or reduce interest rates for current USDA borrowers.
Yes. USDA loans include both an upfront guarantee fee and an annual fee that is paid as part of the monthly payment. However, USDA mortgage insurance costs are often lower than other low down payment loan programs.
USDA offers two different home loan programs: USDA Direct and USDA Guaranteed loans.
The USDA Guaranteed loan program is offered through approved mortgage lenders, like KTL Performance Mortgage.
However, USDA Direct loans are funded directly through the USDA and have different income and eligibility requirements.
Yes! USDA’s renovation loan program allows buyers to purchase a home with needed repairs or updates while still benefiting from USDA’s low down payment requirements.
Want to learn more about USDA Loans?
Whether you’re just starting to explore your options or ready to take the next step, our team is here to help.
