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USDA Home Loans

Buying a home in a USDA-eligible area affords you special down payment and credit requirements for your loan.

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What is a USDA Loan?

USDA loans are backed by the U.S. Department of Agriculture as part of its USDA Rural Development Guaranteed Housing Loan program. USDA loans are available to low-to-moderate-income home buyers who are purchasing a home in a USDA-eligible area.

The USDA backing provides lenders a safety net in case the borrower defaults on the loan. Because of this decreased risk, USDA home loans offer 100% financing and low interest rates.

One of the most important benefits of a USDA loan is no down payment is required. This feature has helped many people access homeownership who otherwise would not have been able to purchase a home.


How to Qualify

Applying for the USDA loan program means meeting the program standards.

USDA Guarantee Fee

Although borrowers are not required to make a down payment, they are responsible for a 1% guarantee fee that can be rolled into closing costs. Additionally, USDA home loans include a 0.35% annual mortgage insurance (MI) fee paid in monthly installments.

Here’s an example: A home buyer who purchases a $100,000 home with nothing down would pay a $1,000 mortgage insurance premium as part of their closing costs, plus a monthly mortgage insurance payment of $29.17.

Compared to other loan programs, like FHA, USDA loan fees are relatively low, which makes them an attractive option for eligible borrowers, especially first-time home buyers.

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Apply for a USDA Loan

Unlike other loan programs, USDA loans can only be issued by USDA-approved lenders. Our mortgage experts are experienced with USDA loans and can help make the process easy for you. Find a loan officer now to get started.

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Johnny Kellogg

Loan OfficerNMLS#: 1667177
Licensed to originate:
I am authorized to do business in the state of Colorado.