USDA Rural Loan 2027
USDA loan: 0% down, 115% AMI income limit (~$110K-$130K family). Property in USDA-eligible rural/suburban area. 1% guarantee fee + 0.35% annual.
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| Income limit (115% AMI) | — |
| Income OK? | — |
| Location | — |
| Location OK? | — |
| Purchase price | — |
| Down payment | — |
| Upfront guarantee fee | — |
| Annual fee | — |
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USDA Rural Development loans offer 100% financing for low-to-moderate income borrowers in USDA-designated rural areas. Requirements: under 115% of Area Median Income, property in eligible location, debt-to-income under 41%, credit 640+ usually required (some lenders 580+).
Eligibility Areas
USDA maintains an eligibility map (eligibility.sc.egov.usda.gov). Most rural areas + small towns under 35,000 population qualify. Many suburbs of mid-size cities are eligible — surprisingly often. Check property address before assuming ineligibility.
Income Limits 2027
115% of Area Median Income (AMI). 4-person household: typically $95K-$115K depending on area. 5+ person: $125K-$152K. Indexed annually. Some areas higher (CA, MA, NY) due to high AMI; some lower (Mississippi, Arkansas).
Fees and Costs
0% down payment (true 100% financing). Upfront guarantee fee: 1% of loan amount (financed into loan). Annual fee: 0.35% of average balance, paid monthly. No PMI. 30-year fixed only. Closing costs negotiable with seller (up to 6%).
Last updated May 2026. Sources: USDA Rural Loans.