An eligible area
The home must be in an area USDA maps as rural. That often includes small towns and the outer edges of suburbs, not only farmland. We run the address through USDA’s eligibility map.
USDA loans
USDA home loans for eligible rural and suburban areas.
Guaranteed by the U.S. Department of Agriculture to help low- and moderate-income households buy a modest home. The loan can cover the full appraised value. Here is how eligibility works, what the fees are, and what to expect.
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- Direct, licensed mortgage lender
- NMLS #103098
- Equal Housing Lender
Where are you in the process?
Pick the one closest to you. A few short questions follow, and a licensed loan officer gets back to you.
Get a quoteReady for the full application? Apply online
Fidelity Residential · NMLS #103098 · Equal Housing Lender
- Direct, licensed lenderNMLS #103098. Check our licences on NMLS Consumer Access.
- A licensed loan officerA real person reviews your file and answers your questions.
- Address and income firstWe check the home’s area and your household income.
- Apply online or by phoneStart a quote, apply online or call 732-686-9999.
The basics
What a USDA loan is
A USDA home loan, also called a Rural Development guaranteed loan, is made by a private lender and guaranteed by the U.S. Department of Agriculture. It helps low- and moderate-income households buy a modest home in an area USDA maps as rural, which includes many small towns and outer suburbs.
Because of the guarantee, the loan can cover the full appraised value of the home, so most buyers need no down payment. When the home appraises above the price, reasonable closing costs can be included in the loan.
The rate is fixed for the life of the loan. You must live in the home.
The USDA fees
- A one-time upfront guarantee fee that can be financed
- An annual fee paid monthly
Together these take the place of mortgage insurance. Your loan estimate shows both in dollars.
Eligibility
How USDA eligibility works
USDA sets the eligible areas and the household income limits, and we check both before anything else.
Household income
The income of every adult who will live in the home counts, not only the people on the loan. It must be under USDA’s limit for the county and the size of the household.
Who can borrow
U.S. citizens, permanent residents and certain other qualified non-citizens. You do not have to be a first-time buyer, but the home must be the one you live in.
How it works
The steps to a USDA loan
Check the area and income
We check the address against USDA’s map and your household income against the county limit. If either does not fit, we look at other programs with you.
Apply and send documents
You complete the application and allow a credit report. Income is documented for every adult in the household, and the file goes through USDA’s automated underwriting system.
The home is appraised
The appraiser confirms the value and that the home meets the property standards. Repairs the appraiser calls for are usually finished before closing.
Our review, then USDA’s
After our underwriter approves the file, USDA reviews it and issues its commitment. Then you review your closing disclosure and sign.
Documents
What documents you need
The automated findings list exactly what your loan needs. Most households can start with these.
- Income records for every adult who will live in the home
- Recent pay stubs, W-2 forms and tax returns
- Bank statements for the accounts you will use at closing
- Proof of citizenship or qualified status
- Your signed purchase contract, once you have one
- Photo identification for everyone on the loan
Questions
Common questions about USDA loans
Do I have to live on a farm?
No. Many small towns and outer suburbs are in eligible areas. What matters is where USDA’s map places the address.
Do I have to be a first-time buyer?
No. The home must be the one you live in, and your household income must be under the county limit.
Why does everyone’s income count?
USDA’s limit is for the household, so it counts every adult who will live in the home, even someone who is not on the loan.
How long does it take?
It depends on the appraisal and how quickly documents come in. A USDA loan has an extra review by USDA after our own underwriting review, so it usually takes longer than an FHA or conventional loan.
Can I refinance a USDA loan?
USDA has refinance options for homes that already have a USDA loan. Whether one fits depends on your loan and your payment record; ask a loan officer.
Do you lend in my state?
Fidelity Residential is licensed in many states. The full, current list is on NMLS Consumer Access (opens in a new tab), or call us at 732-686-9999.
Ready to see if a USDA loan fits?
Get a quote, apply online, or talk it through with a licensed loan officer.
This page is general information, not a commitment to lend. Programs, terms and eligibility depend on credit, income, property and underwriting review and are subject to change without notice.