USDA LOANS
USDA loans offer a unique opportunity for eligible homebuyers in rural and suburban areas to purchase a home with no down payment. Backed by the U.S. Department of Agriculture, these loans are designed to make homeownership more affordable for low-to-moderate income families — without sacrificing great rates or flexible terms.
At The McDaniel Mortgage Group, we help buyers across the country explore USDA loan options and determine if their dream home qualifies.
Why Choose a USDA Loan?
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No Down Payment Required
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Low Interest Rates
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Flexible Credit Guidelines
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Reduced Mortgage Insurance Costs
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Available for Primary Residences Only
Who Qualifies for a USDA Loan?
To be eligible, you must meet the following basic criteria:
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Location: The property must be in a USDA-eligible rural or suburban area. Use the USDA eligibility map to check specific addresses.
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Income Limits: Household income must fall within USDA guidelines, which vary by county and family size.
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Citizenship: U.S. citizens or permanent residents only
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Credit: While there's no official minimum score, a 640+ credit score typically streamlines the approval process.
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Debt-to-Income Ratio: Ideally no more than 41%, though exceptions are possible with strong credit.
Our team will help you check your eligibility and walk you through the USDA approval process from start to finish.
TWO USDA LOAN TYPES
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USDA Guaranteed Loan:
Issued by private lenders and guaranteed by the USDA. This is the most common type and includes flexible income and credit requirements.
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USDA Direct Loan:
Issued directly by the USDA for very low-income borrowers. Offers subsidies and interest rates as low as 1%, but comes with stricter income limits and property conditions.
USDA Loan vs. FHA or VA
Not sure if a USDA loan is the right fit? We’ll help you compare:
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Monthly payment amounts
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Eligibility guidelines
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Geographic restrictions
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Out-of-pocket costs
