USDA Home Loans

A USDA Home Loan is a home loan program, also known as USDA Rural Development Guaranteed Housing Loan Program, that is issued by qualified lenders and backed by the U.S. Department of Agriculture (USDA). The USDA Home Loan is provided to eligible low-to-moderate income homebuyers to encourage affordable homeownership in eligible rural areas of the United States. USDA Home Loans help families who may not qualify for conventional loans.

Advantages of USDA Home Loans

  • Zero Down Payment:
    USDA Home Loans require no money down from the buyers. To qualify for a zero-down-payment, a buyer must purchase in a qualifying rural area and meet income limits
  • 100% Financing:
    USDA Home Loans are 100% financing loans. However, you still have to pay for the inspection, appraisal, and closing costs.
  • 30-Year Fixed Rates:
    Convenience to pay off your loan with a fixed-rate for 30 years.
  • Roll in Closing Cost:
    The closing cost can be rolled into the loan if the home appraisal is more than the purchase price.

Eligibility Requirements for USDA Home Loans

  • U.S. Citizenship or Permanent Residency
  • The Property Must Be in a USDA Eligible Rural Area.
  • Owner Occupied Only:
    USDA loans fund only owner-occupied primary residences. Income-producing property and vacation homes do not qualify.
  • Credit Requirement:
    Applicants should have a good credit history. However, there is no minimum credit requirement for the USDA loan. A good credit score will help you become eligible for an automated underwriting process.
  • Income Requirement:
    The USDA requires applicants to have a stable income that is verifiable.
  • Location Requirement:
    The USDA home loan helps low-to-moderate income people purchase a residential home in a rural area.
  • Property Requirement:
    1. The home must be occupied as a primary residence.
    2. The property must have direct access to a driveway, road, or street.
    3. The property must have adequate utilities such as water and wastewater disposal.
    4. The property cannot be used for commercial purposes.

Why Drew Mortgage?

Drew Mortgage Associates, Inc. is more than a mortgage lender. We’re comprehensive mortgage planners. We can help provide you with mortgage loans or refinance your loans to a lower interest rate or reduced term. Our professional home loan officers will provide you the best mortgage loan that suits your financial needs. We will assist you throughout your mortgage loan process and will guide you while filling up the mortgage loan application form. Drew Mortgage Associates, Inc. is the most preferred mortgage company in MA. If you’re struggling to close with traditional mortgage companies in MA, Drew Mortgage Associates, Inc. can help!


  • What areas are eligible for USDA home loans?

    USDA eligible areas are mostly rural areas and semi-urban areas. You may be surprised to know that some areas that you considered semi-urban areas are actually rural areas.

  • What is the importance of credit history in qualifying for a USDA loan?

    There are no specific criteria when it comes to credit history for you to qualify for a USDA loan. However, having a good credit history is always beneficial and it increases your chance to qualify for mortgage loans.

  • Is USDA loan only for first-time homebuyers?

    No, the USDA home loan is not only for first-time home buyers. Previous home buyers may also use the USDA loan program.

  • Who is eligible for a USDA loan?

    Any individual or family who wants to purchase a home as their primary residence in a qualifying rural area may be eligible for a USDA home loans.

  • Why should I choose a USDA Rural Development Loan?

    USDA Rural Development Loan is a zero down payment, 100% financing loan that has fixed interest rates.

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