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USDA mortgages
USDA mortgages (officially known as USDA Rural Development home loans) are government-backed mortgages from the U.S. Department of Agriculture’s Rural Development program. They’re designed to make homeownership more accessible in eligible rural and suburban areas by offering affordable financing, especially for low- to moderate-income households. These loans promote stable communities outside major urban centers.
Reasons to choose a USDA mortgage
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30-year USDA mortgage guidelines
To qualify for a 30-year USDA mortgage, you will need:
No stated maximum loan amount. Limit is contingent upon income limit and credit profile.
What are the current 30-year USDA mortgage rates?
This chart is the daily national average for USDA loans. Your actual rates could be better or worse depending on factors like your financial profile, the economy and local housing market trends, so stay informed as you plan your home purchase. Contact your Scout Advisors loan officer for your custom tailored rate quote.
Data source: OBMMI
Apply for a USDA mortgage
41% is the standard DTI, but can go up to 46% with compensating factors (680+ credit, 3 months PITI reserves and 2-years stable employment.
There is an upfront fee (around 1%) and an annual fee (currently .35%), paid monthly. For reference the annual mortgage insurance premiums for FHA loans are .55%
USDA defines eligible rural areas (some suburban and small towns also qualify). Check eligibility using the official USDA Map at: eligibility.sc.egov.usda.gov/eligibility
Single-family homes, townhomes, condos, and manufactured homes.
Yes. Household income cannot exceed 115% of the median income for the area and household size. Check income limits here: https://eligibility.sc.egov.usda.gov/eligibility/incomeEligibilityAction.do?pageAction=state
