The USDA Rural Development loan is one of the best-kept secrets in mortgage. Zero down payment, competitive fixed rates, and access to homes across far more of the country than the name suggests, including a lot of suburbs around Las Vegas. If you're not VA-eligible but you'd love to skip the down payment, this is the conversation.
USDA loans are guaranteed by the U.S. Department of Agriculture's Rural Development program. Like FHA and VA, the USDA itself doesn't lend, we do, but the federal guarantee makes zero-down financing possible for borrowers who fit the program's two main criteria: the property has to be in a USDA-eligible area, and your household income has to fit within the area's income limits.
Two costs replace the traditional down payment: a 1% upfront guarantee fee (financed into the loan) and an annual fee of 0.35% of the loan balance, paid monthly. The annual fee continues for the life of the loan, but it's typically lower than the equivalent FHA monthly mortgage insurance, which is why USDA tends to win on monthly payment when it fits.
"Rural" is misleading. The USDA's eligibility map covers many suburban and small-town areas around metro markets, a lot of buyers who'd never think to ask about USDA actually qualify. We check eligibility on the address as soon as you tell us where you're shopping.
Numbers are illustrative only and assume an example interest rate; they're not a quote. Property taxes, homeowners insurance, and HOA dues (if any) are additional. Real numbers depend on your full financial profile, the eligibility check on the property, and the rate at the moment we lock. Get a real quote and we'll show you exactly what your scenario looks like.
The USDA publishes a property eligibility map that lets you type in any address and see if it qualifies. The map is broader than people expect, many areas that look fully suburban from the outside still qualify under USDA's definition of "rural." Around Las Vegas, eligibility extends to a lot of outer suburbs, Pahrump, Mesquite, and similar markets. Around your target area in Texas, we can do the same check. Just send us the address and we'll confirm before you write an offer.
Your household income must be at or below 115% of the area median income, adjusted for household size. The USDA publishes specific dollar limits per county and per family size. As a rough range: in many parts of Nevada and Texas, a four-person household can often earn up to roughly $110,000-$130,000 per year and still qualify, sometimes higher. We pull the exact number for your address and household when you reach out. You'd be surprised how many people who think "I make too much" actually qualify.
Two parts. Upfront guarantee fee is 1% of the loan amount, paid at closing, usually rolled into the loan rather than paid in cash. On a $300,000 loan that's $3,000 added to your balance.
Annual fee is 0.35% of the remaining loan balance per year, divided by 12 and added to your monthly payment. On that same $300k loan, that's roughly $88 per month at the start, declining slightly as you pay down principal. The annual fee stays for the life of the loan unless you refinance into a different product later.
Yes, if the home is in an eligible area and your loan was originally USDA. The USDA Streamline Assist Refinance is the simplest path: no new appraisal needed in most cases, less paperwork, used to lower your rate while staying inside the USDA program. We can run the math when rates make sense for your specific situation.
USDA is generally for move-in-ready homes that meet their appraisal standards. Substantial fixer-uppers don't fit the standard USDA program. If you're looking at a property that needs significant work, we'd usually look at FHA's 203(k) renovation loan as a better fit. Tell us what you're considering and we'll point you at the right product.
VA wins if you're eligible (zero down, no monthly mortgage insurance, no income limit, no eligible-area requirement). USDA wins over FHA on monthly payment when both fit, because USDA's 0.35% annual fee is typically lower than FHA's monthly MIP. FHA wins when the property isn't in a USDA-eligible area, when income exceeds USDA limits, or when credit is lower than 640. We'll run all three side by side for you when more than one fits.
The USDA itself doesn't set a minimum credit score, but most lenders use 640 as the floor for the streamlined automated approval path. Below 640, the loan can still go through manual underwriting, but it requires more documentation and the approval is less predictable. Above 640, the process is straightforward. If you're close to 640, we can sometimes help you push the score the small distance needed before applying.
Send us the property address and we'll check USDA eligibility for free. We'll also run your household income against the area limit and reach out within one business day with real numbers.
Tell us the property address and we'll check eligibility before we run anything else.
Someone from our team will reach out within one business day. If it's urgent, call us anytime at 702-550-9061.
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If your address doesn't qualify or you're over income, here are the next best options to look at.