Core borrower requirements
- Household income generally cannot exceed 115% of the applicable median household income.
- The borrower must occupy the home as the primary residence.
- The applicant must meet applicable citizenship or qualified-status rules.
- The borrower must demonstrate willingness and ability to manage debt.
- Any lender-specific, lawful underwriting standards also apply.
Eligible property and uses
Funds may support an eligible new or existing primary residence, including certain detached, attached, condominium, planned-unit, modular or manufactured homes. Eligible uses can include purchase, construction, acquisition-related repairs, reasonable closing costs and certain essential equipment or site-preparation costs. Income-producing properties are not eligible under the basic program description.
Rural location and income review
USDA determines geographic and income eligibility. A mailing address that appears rural is not enough, and some communities near metropolitan areas may qualify while others do not. Household income can differ from the income a lender uses to calculate repayment ability.
Rates, guarantee and fees
Private lenders set interest rates. USDA provides a 90% loan-note guarantee to approved lenders, reducing lender risk. Program guarantee fees may apply even though traditional private mortgage insurance is not used.
Qualified borrowers may finance up to 100% of eligible value, but appraisal differences, non-allowable costs, deposits and transaction structure can still affect cash required at closing.
Personal guidance
Want to discuss how this applies to you?
Greg can help you compare current loan options, documentation, costs and timing for your property and financial goals.
This educational summary was prepared from the referenced official material and reviewed on September 13, 2026. Program rules, limits and eligibility can change. Your lender’s current underwriting requirements and official disclosures control.