--- title: "USDA Loans | PierPoint Mortgage" description: "USDA loans for rural & suburban buyers - zero-down financing for households at or below 115% of area median income. Compare 100+ lenders. Call: (231) 737-9911" author: "PierPoint Mortgage" date: "2026-03-29" tags: ["usda loans"] canonical: "https://pierpointmortgage.com/usda-loans/" last_updated: "2026-06-10" --- # USDA Loans | PierPoint Mortgage **By PierPoint Mortgage** | March 29, 2026 USDA loans for rural & suburban buyers - zero-down financing for households at or below 115% of area median income. Compare 100+ lenders. Call: (231) 737-9911 --- > **Quick answer:** USDA loans through [PierPoint Mortgage](https://pierpointmortgage.com/) provide zero-down-payment financing for eligible homebuyers purchasing in USDA-designated rural and suburban areas. Backed by the United States Department of Agriculture, these loans feature reduced mortgage insurance costs and below-market interest rates for borrowers with household incomes at or below 115% of the area median. Call [(231) 737-9911](tel:+12317379911) to check your eligibility. [Start Your Application](https://shannonswartz.zipforhome.com/LoanApplication/Contact?Language=E&IsStart=Y) Overview ## What Is a USDA Loan? A USDA loan is a zero-down-payment mortgage backed by the United States Department of Agriculture through its Rural Housing Service. The program was created to promote homeownership in rural and suburban communities that meet specific population thresholds. Two types of USDA loans exist. Guaranteed loans are issued by approved private lenders like PierPoint Mortgage and backed by the USDA. Direct loans are funded directly by the USDA for very-low-income applicants. Most borrowers use the guaranteed loan program because it offers more flexible income limits and is available through standard mortgage lenders. Despite the name, USDA-eligible areas are not limited to farmland. Many suburban communities, small towns, and exurban neighborhoods qualify. The USDA eligibility map is updated periodically, and some areas that seem suburban or even semi-urban are included in the program. Eligibility ## USDA Loan Requirements ### Income Limits Your household income must not exceed 115% of the area median income for your county. All household members’ income is counted, not just the borrower’s. ### Property Location The home must be in a USDA-designated rural area. Use the USDA eligibility map at rd.usda.gov to verify any address before making an offer. ### Credit Score Most USDA lenders require a minimum score of 640 for automated underwriting approval. Borrowers below 640 may still qualify through manual underwriting. ### Primary Residence The property must serve as your primary home. Investment properties, vacation homes, and income-producing farms are not eligible for USDA financing. ### U.S. Citizenship Applicants must be U.S. citizens, qualified aliens, or non-citizen nationals with valid government-issued identification. ### Property Standards The home must have adequate utilities, road access, and meet USDA minimum property requirements. Most single-family homes under 2,000 square feet in eligible zones qualify. Process ## How USDA Loans Work 1 ### Check Eligibility Verify that the property address falls within a USDA-eligible area and that your household income meets the 115% limit for your county. 2 ### Get Pre-Approved Submit income documentation, identification, and credit authorization to PierPoint Mortgage for a USDA pre-approval assessment. 3 ### Find an Eligible Property Work with your agent to identify homes in USDA-designated zones that meet the program’s property condition requirements. 4 ### Submit Your Application Complete the loan application with full documentation including tax returns, pay stubs, bank statements, and proof of citizenship. 5 ### USDA Appraisal and Review A certified appraiser evaluates the property for value and condition. The file is then submitted to USDA for their underwriting review. 6 ### Close on Your Home After USDA approval, finalize the transaction at the closing table with zero down payment and begin enjoying your new home. Advantages ## Benefits of USDA Loans ### Zero Down Payment USDA loans offer 100% financing, meaning no down payment is required. This is one of only two major loan programs (along with VA) that allow zero-down purchases. ### Lower Mortgage Insurance The USDA guarantee fee (1% upfront and 0.35% annually) is significantly less than FHA mortgage insurance premiums, saving hundreds per year. ### Below-Market Rates USDA loan interest rates are often 0.25% to 0.50% lower than conventional rates because the government guarantee reduces lender risk. ### Flexible Credit Requirements Manual underwriting is available for borrowers with limited credit history or scores below 640, considering alternative credit sources like rent and utility payments. ### Closing Cost Financing Closing costs can be financed into the loan if the appraised value exceeds the purchase price, or the seller can contribute up to 6%. Ideal Borrower ## Who Should Consider a USDA Loan? USDA loans are purpose-built for moderate-income families who want to buy a home in a rural or suburban community without saving for a large down payment. If your household income falls within the county limits and you want to live outside of major metropolitan centers, this program offers unmatched affordability. First-time and repeat homebuyers both qualify. There is no first-time buyer requirement, and you can use the program even if you have owned a home before, as long as you do not currently own adequate housing. Borrowers with limited savings benefit the most because the zero-down structure means your only upfront cost is closing fees, which can often be rolled into the loan or covered by seller contributions. Combined with below-market interest rates, USDA loans produce some of the lowest monthly payments available in today’s mortgage market. Comparison ## How Does This Compare? | Feature | USDA | FHA | VA | Conventional | | --- | --- | --- | --- | --- | | Down Payment | 0% | 3.5% | 0% | 3% – 20% | | Income Limits | 115% of area median | None | None | None | | Location Restrictions | Rural/suburban only | None | None | None | | Mortgage Insurance | 1% upfront + 0.35% annual | 1.75% + 0.55% annual | None | PMI (removable) | | [Credit Score](https://pierpointmortgage.com/credit-info/) | 640 (most lenders) | 580 | No minimum | 620 | FAQ ## Frequently Asked Questions What areas qualify for USDA loans? USDA-eligible areas include rural communities and many suburban neighborhoods outside major metro centers. Areas with populations under 35,000 typically qualify. You can check any address instantly using the USDA property eligibility map at rd.usda.gov. Is there really no down payment? Correct. USDA guaranteed loans require zero down payment. The entire purchase price can be financed. If the appraisal comes in higher than the purchase price, you can even finance your closing costs into the loan. What are the income limits? Your total household income cannot exceed 115% of the median household income for your county. This includes income from all adult household members, even those not on the loan. Limits vary significantly by county and household size. Can I buy a manufactured home with a USDA loan? Yes, if the manufactured home is permanently affixed to a foundation on USDA-eligible land, meets HUD standards, and was built after June 15, 1976. The land and home must be financed together. How long does USDA loan approval take? USDA loans add an extra step because the file must be reviewed by the USDA after your lender’s underwriting. This typically adds 1 to 2 weeks, making total closing time around 45 to 60 days. Related Products ## Explore More Loan Options [FHA Loans](https://pierpointmortgage.com/fha-loans/)[VA Loans](https://pierpointmortgage.com/va-loans/)[Conventional Loans](https://pierpointmortgage.com/conventional-loans/)[Manufactured Home Loans](https://pierpointmortgage.com/manufactured-home-loans/) ## Available Across 15 States [Alabama](https://pierpointmortgage.com/mortgage-broker/mortgage-broker-alabama/)[California](https://pierpointmortgage.com/mortgage-broker/mortgage-broker-california/)[Colorado](https://pierpointmortgage.com/mortgage-broker/mortgage-broker-colorado/)[Connecticut](https://pierpointmortgage.com/mortgage-broker/mortgage-broker-connecticut/)[Florida](https://pierpointmortgage.com/mortgage-broker/mortgage-broker-florida/)[Georgia](https://pierpointmortgage.com/mortgage-broker/mortgage-broker-georgia/)[Louisiana](https://pierpointmortgage.com/mortgage-broker/mortgage-broker-louisiana/)[Maine](https://pierpointmortgage.com/mortgage-broker/mortgage-broker-maine/)[Michigan](https://pierpointmortgage.com/mortgage-broker/mortgage-broker-michigan/)[North Carolina](https://pierpointmortgage.com/mortgage-broker/mortgage-broker-north-carolina/)[Oklahoma](https://pierpointmortgage.com/mortgage-broker/mortgage-broker-oklahoma/)[Oregon](https://pierpointmortgage.com/mortgage-broker/mortgage-broker-oregon/)[Pennsylvania](https://pierpointmortgage.com/mortgage-broker/mortgage-broker-pennsylvania/)[Virginia](https://pierpointmortgage.com/mortgage-broker/mortgage-broker-virginia/)[Washington](https://pierpointmortgage.com/mortgage-broker/mortgage-broker-washington/) [View All Service Areas →](https://pierpointmortgage.com/service-areas/) ## Ready to Get Started? Speak with an experienced PierPoint Mortgage loan officer today. We will help you find the right loan for your goals and guide you through every step of the process. Call [(231) 737-9911](tel:+12317379911) for a free consultation. [SEE YOUR RATE NOW](https://shannonswartz.zipforhome.com/LoanApplication/Contact?Language=E&IsStart=Y)[CALL (231) 737-9911](tel:+12317379911) NMLS #112844 · Equal Housing Opportunity · No credit pull required to start --- **Shopping a mortgage in one of our 15 states?** PierPoint Mortgage is an independent brokerage, NMLS #112844, licensed since 2003. We compare wholesale rate sheets from 100+ lenders instead of selling one bank's products, and give you a written quote before you commit to anything. - Free rate comparison: (231) 737-9911 - Apply: https://pierpointmortgage.com/apply/ - Full page: https://pierpointmortgage.com/usda-loans/