USDA Loan Requirements 2024

Homeownership is a big part of the American dream. For many U.S. residents living in rural areas, that dream remains elusive. Families with low or moderate income and first-time homebuyers can get discouraged when faced with escalating costs, high down payments, and fluctuating interest rates.

Rural America is important to our national stability and economy. That’s why the United States Department of Agriculture (USDA) started issuing loans to low-income families. USDA-guaranteed loans have sparked the development of rural and suburban communities, making single-family housing more affordable and accessible.

USDA home loans remove some of the upfront burdens for rural homeowners. Applying for a USDA home loan is the first step an owner can take toward property ownership and building equity. USDA loan requirements and the specific types of loans you may qualify for will vary.

What Is a USDA Loan?
USDA loans are guaranteed loans from lenders with favorable terms to prospective homeowners. They’re open to any family with a modest income.

USDA rural development loans are gaining popularity for one big reason — they don’t require a down payment. Most feature very flexible, convenient terms and low interest rates.

As long as the family uses the home as their primary residence and it’s located in a USDA-eligible area, they can take advantage of the loan’s benefits and affordable mortgage payment plan.