The USDA loan: zero down, for the towns just outside the city line.
Backed by the U.S. Department of Agriculture, this loan was built to help moderate-income buyers put down roots in eligible rural and suburban communities — with no down payment at all.
Is a USDA loan right for you?
USDA loans reward patience with location and income more than they reward a big down payment. Here's how to know quickly if it's worth exploring.
This is a strong fit if
- The home you want is in a USDA-eligible rural or suburban area (more of Northeast Ohio qualifies than most buyers expect)
- Your household income falls at or below your county's USDA limit
- You want to buy with little or nothing saved for a down payment
- You plan to live in the home as your primary residence
Worth a second look if
- You're set on a home inside city limits or a dense suburb
- Your household income runs above the local USDA limit
- You're buying a second home or an investment property
How the USDA loan grows
Every USDA approval grows from the same four roots. None of them are about your down payment — they're about where you're buying and what you earn.
Location eligibility
The property has to sit inside a USDA-designated rural or eligible suburban zone. We check the address against the USDA map before you fall in love with a listing.
Income limits
Your total household income — not just the buyer's income — needs to fall at or below the limit set for your county and household size.
Credit & history
Most lenders look for credit in the mid-600s and a steady work history, though USDA guidelines themselves are flexible for thin credit files.
Guarantee fee
In place of a down payment, USDA charges an upfront guarantee fee (financeable into the loan) plus a small annual fee, which funds the program.
The numbers, at a glance
How it stacks up against other paths
Common questions
Does “rural” really mean the middle of nowhere?
Not usually. USDA's map includes many small towns and suburbs on the edge of larger metro areas — it's based on population, not how remote a place feels. We'll check any address you're considering.
Can I use a USDA loan for a home I plan to rent out?
No. USDA loans are for owner-occupied primary residences only, which is part of how the program keeps rates and fees low.
What if my income is slightly over the limit?
Certain deductions — like childcare costs or a household member with a disability — can sometimes bring qualifying income under the cap. It's worth running the numbers before ruling it out.
Is there a minimum down payment at all?
No minimum is required, though putting something down is always allowed and will lower your monthly payment.
Let's find out what you actually qualify for
Every buyer's situation is different. Send us a few details and a HomeRoots Group agent will walk you through your real numbers — no pressure, no obligation.
This page is for general information and isn’t a loan offer or commitment. Rates, terms, and eligibility are set by lenders and program guidelines and can change.