USDA home loans · Small towns and suburbs

Make your home outside the city, with a loan built for it.

USDA loans are backed by the U.S. Department of Agriculture for homes in eligible rural and suburban areas, for households within the area’s income limits. Many eligible places are small towns and suburbs, not farmland.

See my USDA options

Not sure the area is eligible? Your loan officer checks the address before you commit.

Two red barns on open farmland at sunset

What to know.

The essentials, in plain English.

Easier on your savings: USDA loans are designed for buyers with modest savings, so a small savings account doesn’t have to keep you renting.
Fees that often cost less than FHA’s: USDA’s upfront and annual guarantee fees take the place of mortgage insurance, often cost less than FHA’s, and the upfront fee can usually be added to the loan.
More places than you’d think: Eligible areas include many small towns and suburbs, not only farmland.
The address checked first: Your loan officer checks the address and your household’s income limit before you make an offer, so you shop where USDA works.

See my USDA options

What happens after you press the button.

Your loan officer reaches out: Ryan reads what you send personally and gets in touch to talk it through.
What you’ll talk about: Where you want to live and who earns in your household, so the address and the income limit can be checked.
What to have handy: The area or address you’re considering, and a rough idea of your household’s income.

See my USDA options

Who it fits
Buyers with moderate household income who want to live in an eligible area.
- First-time and repeat buyers
- Households within the area’s income limit
- Buyers purchasing a home to live in
- Buyers looking in eligible small towns and suburbs
See my USDA options
What you’ll need
Your loan officer confirms the list for your household.
- Income documents for everyone in the household who earns
- Recent pay stubs, W-2s and tax returns
- Bank statements
- The address or area you’re considering
See my USDA options

Common questions

How do I know if a home is eligible?

USDA publishes a map of eligible areas, and your loan officer can check any address for you.

Is a USDA loan only for farms?

No. It is for homes to live in, and many eligible areas are small towns and suburbs.

USDA or FHA: which is right for me?

In an eligible area and within the income limit, USDA can ask for less down, and its fees often cost less than FHA’s mortgage insurance. FHA works anywhere and has no income limit. Compare both, with the full terms of each.

What are the income limits?

USDA sets a limit for each area by household size, and it counts the income of everyone in the household. Your loan officer can check the limit where you’re looking.

What is the USDA guarantee fee?

It takes the place of mortgage insurance: an upfront fee, which can usually be added to the loan, and an annual fee paid monthly.

Do I have to be a first-time buyer?

No. USDA loans are for buyers who will live in the home, and you usually can’t already own a suitable home nearby.

What credit do I need?

USDA doesn’t fix one score for every borrower, and lenders set their own guidelines. Your loan officer looks at your credit, income and debts together.

Will checking my options affect my credit?

Answering a few questions doesn’t check your credit. A credit check comes later, only with your permission, and your loan officer can explain how it may affect your score.

What if I don’t qualify?

If the area or your income falls outside USDA’s limits, your loan officer can show you FHA, conventional or down payment help instead.

What does a USDA loan cost?

Closing costs plus USDA’s upfront and annual guarantee fees. Your Loan Estimate lists every cost before you commit.

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Northbrook families,
in their own words.

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“We are so incredibly grateful we found Ryan! My wife and I were pretty overwhelmed when we first started looking at mortgages. When we were shopping around, we always felt like we were constantly being pushed into boxes or swayed into lending options that just didn't fit us. Meeting Ryan was a total breath of fresh air. From our very first conversation, he didn't treat us like just another file—he took the time to actually listen and understand exactly where we were at in our lives. Because of his incredible knowledge, he helped us get the exact mortgage we needed for our dream home. He educated us, answered every single silly question we had, and turned our anxiety into pure excitement. Ryan is truly incredible at what he does.”

Jonathan Peig2 months ago

“Thank you to Ryan and his team. Our realtor recommended them. We are very happy we decided to work with them. They kept in touch after we decided it wasn't the right time to buy. One year later, we are in our new home. They made the loan process a stress free experience. They put in the time and effort to make sure their clients are able to make informed decisions. I definitely recommend them for your financing needs!”

Amanda Atkinsona year ago

“We were caught in a situation where we needed to close rather quickly and Ryan and his team at Neighborhood Loans really came through. Ryan had great ideas regarding the financing options available. The communication process was markedly better than any of our previous dealings with lenders. The entire team was fabulous to work with-they showed great patience dealing with form submissions, etc. as we are not the most tech savvy couple. Bottom line-one of the finest customer service experiences ever for Lisa and I. We would heartily recommend Ryan and his team to anyone looking for mortgage assistance. Five Stars!”