About USDA Home Loans
A USDA Home Loan is a mortgage loan offered to rural property owners by the United States Department of Agriculture (USDA). In order to be eligible, the home must be located in a rural area or “any area with a population of 35,000 or less”. Borrowers can use the USDA Property Eligibility Program to determine the eligibility of a certain property.
USDA loans have an income and asset cap, meaning that a borrower’s combined household income cannot exceed their threshold in order to qualify for the loan. However, new limits are set every year in the spring, capped around 15% above the average median income in the area.
Those that qualify can purchase, build, rehabilitate, improve or relocate a dwelling in an eligible rural area.