USDA Loan Eligibility: How to Check If Your Property Qualifies
A USDA loan is available for properties in areas the USDA designates as rural or suburban based on population density, not only farmland. Borrowers must also meet income limits that vary by county and household size. More properties qualify than most borrowers expect: many suburban communities outside major metros are USDA-eligible. The fastest way to check is the USDA's online eligibility map at eligibility.sc.egov.usda.gov.
Key facts
- Down payment
- 0% required
- Typical credit minimum
- 640 (lender standard)
- Property location
- USDA-designated eligible area
- Income limit
- Varies by county and household size
| Requirement | Standard |
|---|---|
| Down payment | 0% required |
| Minimum credit score | 640 (typical lender standard; USDA has no published minimum) |
| Maximum DTI | 41% back-end (standard) |
| Income limit | Varies by county and household size |
| Property location | Must be in USDA-designated eligible area |
| Occupancy | Primary residence only |
| Property type | Single-family; some condos and manufactured homes |
| Upfront guarantee fee | 1% of loan amount (financeable) |
| Annual fee | 0.35% of outstanding balance, paid monthly |
Source: USDA Rural Development guidelines, 2025
What Areas Qualify for a USDA Loan?
USDA eligible areas are not limited to farmland. The USDA defines eligible areas based on population density, which means many small towns and outer suburbs of major metros qualify. Anything outside a designated urbanized area can be in scope.
The map is updated periodically as census data changes. A property that was not eligible a few years ago may be eligible today, and vice versa. Always check the current map at eligibility.sc.egov.usda.gov before assuming a property is or is not eligible.
How to Check USDA Property Eligibility in 3 Steps
- Go to eligibility.sc.egov.usda.gov
- Enter the property address
- The map shows whether the property is in an eligible area. Results are instant and free.
Eligibility maps are updated periodically. Always check the current map, not older sources or screenshots from prior years.
USDA Income Limits: How They Work and Where to Find Them
USDA income limits cap household income at 115% of the area median income (AMI) for the Guaranteed Loan program. Limits vary by county and rise with household size, so a five-person household has a higher cap than a two-person household in the same county.
Household income includes all adult earners in the home, not just borrowers on the loan. The USDA publishes current limits by county at the USDA Income Eligibility tool. A loan officer can run your specific household against the current limit in under a minute.
What Properties Qualify for USDA Financing?
USDA financing is for single-family primary residences in eligible areas. Some condominiums on USDA-approved condo lists qualify, and certain manufactured homes that meet HUD and USDA standards are eligible. Investment property, second homes, and income-producing farms are not eligible.
The property must also meet USDA minimum property requirements, which cover safety, soundness, and sanitation. A USDA appraisal confirms both market value and that the property meets these standards.
USDA vs. FHA Loan: Which Is Better for First-Time Buyers?
| USDA | FHA | |
|---|---|---|
| Down payment | 0% | 3.5% (580+ credit) |
| Geographic restriction | Eligible rural/suburban areas only | No restriction |
| Income limit | Yes, varies by county | No income limit |
| Mortgage insurance | Annual fee 0.35% | MIP for life of loan |
| Credit minimum | 640 typical | 580 for 3.5% down |
| Best for | Rural/suburban first-time buyers within income limits | Buyers with lower credit anywhere |
USDA wins on monthly cost when the property and income qualify. FHA wins on flexibility: no geographic restriction, no income cap, and a lower credit floor.
How to Apply for a USDA Loan
Start by confirming the property is in a USDA-eligible area and that your household income is within the county limit. Then apply with a USDA-approved lender who underwrites Guaranteed Rural Housing loans. The lender pulls credit, verifies income and assets, and orders the USDA appraisal.
USDA loans go through a two-step approval: the lender approves the file, then the USDA issues a conditional commitment. Total turnaround is typically 30 to 45 days from application to closing.
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Frequently asked
What areas qualify for a USDA loan?
Properties in areas the USDA designates as rural or suburban based on population density. Many small towns and outer suburbs outside major metros are eligible. Check the current map at eligibility.sc.egov.usda.gov by entering the address.
How do I check if a property is USDA eligible?
Go to eligibility.sc.egov.usda.gov, enter the property address, and the map will show whether the property is in an eligible area. Results are free and instant. Eligibility maps update periodically, so always check the current map.
What are the USDA loan income limits?
USDA caps household income at 115% of the area median income for the Guaranteed Loan program. Limits vary by county and rise with household size. The USDA publishes current county limits in its Income Eligibility tool, and a loan officer can confirm your specific household in a minute.
Can I use a USDA loan to buy a house in the suburbs?
Often, yes. USDA eligibility is based on population density, not zoning. Many suburban communities outside major metros are USDA-eligible. Always check the address on the USDA map before assuming the property does or does not qualify.
What is the USDA guarantee fee?
USDA charges a 1% upfront guarantee fee (financeable into the loan) and an annual fee of 0.35% of the outstanding loan balance, billed monthly. These replace the private mortgage insurance that conventional loans charge below 20% down.
What is the difference between a USDA loan and an FHA loan?
USDA requires 0% down but only works in eligible rural and suburban areas and has household income limits. FHA requires 3.5% down with a 580 credit score, has no geographic restriction, no income limit, and a lower credit floor, but charges MIP for the life of the loan.
USDA loan requirements are per USDA Rural Development guidelines as of 2025 and subject to change. Income limits and eligible areas are updated periodically. Confirm current eligibility at eligibility.sc.egov.usda.gov. Not a commitment to lend. Encompass Lending Group, LP NMLS #292897.
