US Department of Agriculture or UDSA Loans

You might be wondering,  what does the US Department of Agriculture (USDA) have to do with getting a home loan?  USDA loans are actually part of the Rural Development program and they offer mortgages for homebuyers in rural areas without a down payment required (100% – 102% LTV financing based on appraised value.) Although there may possibly be financed closing costs, USDA Home Loans are great because they can offer reduced monthly mortgage insurance premiums and seller concessions of up to 6% of the sales price. If you live on a farm, ranch, or in a rural area and you need a loan that works for your situation, then the Score team is here to help! Call us at  (314) 607-5566 for more information on USDA home loans.

Who is eligible for a USDA Loan?

USDA Home Loans are not restricted to first time home buyers, but U.S. citizenship  is a requirement. Other requirements include a consistent income of at least 2 years, an acceptable credit history, and a monthly payment that’s 29% or less of your monthly income (not to exceed 41% of your income, unless you have a credit score above 680.)


Speaking of credit scores, applicants with a score of 640 or above will receive faster processing times. For those with lower credit scores, there are a few more underwriting standards or “non-traditional” references that may be utilized. Give us a call at  (314) 279-8432 to learn more about the eligibilty requirements.

USDA Home Loan Features

  • Increased assistance:

    USDA Home Loans are an additional resource in home loans, especially for those who may not be eligible for a traditional loan.

  • Diverse locations:

    Traditionally, urban areas are excluded from the program, but the suburbs offer some small opportunities. Rural areas, however, are always eligible.

  • A range of options:

    2,000 square feet or less is the usual size home for a USDA Home Loan, but it is dependent upon location. Loan ranges are also determined by market, with higher loans in more costly markets, as well as lower in rural areas.