What is a USDA loan

A USDA loan, formally known as a USDA Rural Development Guaranteed Housing Loan, is a type of mortgage loan offered by the United States Department of Agriculture (USDA) to help individuals and families purchase homes in eligible rural and suburban areas. Rural areas, which include certain suburban areas and less densely populated areas, are designated by the USDA as rural areas, which serve as the primary purpose of USDA loans.

Key features of
USDA loans include:

No Down Payment

USDA loans have the advantage of not requiring a down payment, which can make homeownership more accessible to individuals with little or no savings.

Low Interest Rates

A USDA loan has a competitive interest rate, which can save borrowers money.

Income Requirements

In order for people with moderate to low incomes to benefit from USDA loans, income limits are set based on the location of the property and the number of people in the household.

Property Eligibility

A USDA loan is intended for properties located in eligible rural and suburban areas. The USDA offers a map of eligible areas on their website.

Guarantee Fee

As with mortgage insurance, USDA loans typically require a guarantee fee to protect the lender in case the borrower defaults.

Credit Requirements

In spite of USDA loans being designed for borrowers with low credit scores, lenders may have their own requirements.


You can start the application process on our website by filling out the form online, setting up a loan consultation appointment, or calling us on the phone. There is not an application fee.
Your borrowing capacity depends on your income, expenses, creditworthiness, and the type of loan you’re applying for. We’ll work with you to find a loan amount that works with your budget and your comfort level.
We will typically work through this together. You will want to lock in once you are under contract on your home and your loan has been uploaded to the lender.
Yes, you can make extra payments and even pay off your mortgage early. If you are paying off your mortgage you can do so after making six monthly payments without a penalty.
Yes, you can make extra payments and even pay off your mortgage early. If you are paying off your mortgage you can do so after making six monthly payments without a penalty.
Closing costs include fees for services such as title company costs, setting up your escrow account (property taxes and insurance), origination fees from lender for underwriting, etc. We typically have the lender pay our origination fee to help keep your closing costs lower.
We offer a range of home loan options, including Conventional, FHA, VA, USDA, Jumbo, Bank Statement, Asset Qualifier, Refinance, Reverse Mortgage, and so many others. Each loan type has unique features to suit different financial situations. Let our expertise guide you to find the one that is right for you.
Loan Approval: You receive final approval from the lender (clear to close). Closing: The final paperwork is signed by all parties and the loan is then funded and recorded.
As mortgage brokers we have access to 60+ wholesale lenders providing you with multiple options for all your home buying needs with lower rates and exceptional service. At Loans By Vicky, we stay in constant contact with you throughout the entire process. We are still here for you even after you close. We love making friends one mortgage at a time!

Get Pre-Approved quickly for your USDA loan through our app!

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