USDA loans make it possible to buy a home in approved rural and suburban areas with no down payment and competitive interest rates. Backed by the U.S. Department of Agriculture, this program is ideal for qualifying buyers looking for an affordable path to homeownership. We’re here to help you navigate the process with ease.
A USDA loan is a government-backed mortgage for buyers purchasing in eligible rural and suburban areas. Offered through the U.S. Department of Agriculture, USDA loans provide 100% financing with no down payment and reduced mortgage insurance costs — making homeownership more accessible for qualified buyers.
To qualify, you must purchase a home in a USDA-eligible area and meet income limits based on your household size and location. These loans are designed for moderate-income borrowers and are most commonly used by first-time buyers seeking affordable financing options in less densely populated areas.
USDA loans offer several key benefits: no down payment, low interest rates, and reduced mortgage insurance compared to other loan types. They’re ideal for buyers who qualify based on income and location, and who want to minimize out-of-pocket costs while securing long-term financing.
Yes. USDA loans are intended for low-to-moderate income households. Income limits vary by county and household size. In most cases, your total household income must fall below 115% of the area median income. We’ll help you check your eligibility and walk you through the application.
USDA loans are for primary residences only, and the home must be in a USDA-approved area. Eligible properties include single-family homes and newly built residences. Fixer-uppers and income-producing properties like farms or rentals typically do not qualify.
No. USDA loans are available to both first-time and repeat buyers, as long as you meet the income and location requirements. It’s an excellent option for anyone looking to buy in a qualifying area with little to no down payment required.
At LUMI Funding Group, we help buyers take advantage of affordable financing options like USDA loans. If you’re purchasing in a qualifying rural or suburban area, we’ll walk you through every step — from confirming your eligibility to closing on your new home.
Our team simplifies the process, explains the guidelines clearly, and moves quickly to keep your loan on track. Whether you’re buying your first home or relocating to a new area, we’re here to help you secure 100% financing with confidence and care.
USDA loans offer unique benefits, including no down payment and reduced mortgage insurance — but they also come with specific eligibility rules. Below are the most common questions to help you understand how USDA loans work and whether this option is right for you.
USDA loans are available in designated rural and suburban areas as defined by the U.S. Department of Agriculture. These include many small towns and outer suburbs. We can help you search for eligible properties and confirm if the home you’re considering qualifies.
No. One of the main advantages of USDA financing is 100% financing, which means no down payment is required. This makes it easier for buyers to enter the market without having to save a large upfront amount.
Yes, but it’s more affordable than FHA or conventional mortgage insurance. USDA loans include a guarantee fee, which consists of a one-time upfront fee and a small monthly premium. These fees help keep the program running and protect the lender.
While USDA guidelines are flexible, most lenders look for a minimum credit score of 640. That said, lower scores may be considered with strong compensating factors like stable income or limited debt. We’ll help review your profile and find the best fit.
Yes. USDA loans offer refinance options for borrowers who already have a USDA mortgage. These include streamlined refinance programs with limited documentation. Cash-out refinancing is not available, but you may be able to lower your payment or rate.
Closing a USDA loan typically takes a little longer than a conventional loan due to the required USDA approval process, which adds a few extra days. On average, expect 30 to 45 days from start to finish. We’ll help move things forward quickly and keep you updated throughout.
USDA loans offer zero down payment, making homeownership more accessible for qualified buyers.
Loans are available only in USDA-eligible rural and suburban areas.
Borrowers must meet household income limits based on location and family size.
USDA loans are for primary residences only, not investment or rental properties.
Credit score requirements are generally 640 or higher, though flexible options may be available.
Buyers benefit from lower monthly mortgage insurance costs compared to FHA or conventional loans.
