Generally, USDA loans are available to anyone who meets the minimum credit guidelines and local area income requirements and are purchasing a home or refinancing their home in a non-major metropolitan area. Some common misconceptions of USDA loans include:

• USDA loans are only for farmers: USDA loans serve farmers as well as millions of people from all walks of life.
• FHA or Conventional loan programs are better: USDA loans often offer better terms than an FHA or Conventional loan program.
• USDA loans aren't flexible: USDA home loans can be used to both buy a new home or refinance to a lower rate.
• Only certain people can qualify for a USDA loan: USDA loans are available in many areas that most people would not consider rural. For example, many small communities just outside of metropolitan areas qualify as rural areas according to the U.S. Department of Agriculture.
• USDA loans are harder to get than an FHA or Conventional loan: In many cases, USDA loans offer more flexibility in part because they are guaranteed by the government.

Estimate your monthly mortgage payment, easily*

USDA mortgages can help more people enter the homebuying market. Some benefits a USDA mortgage loan program offers includes:

• Affordable mortgage insurance; USDA loans typically feature low upfront and annual mortgage insurance premiums enhancing affordability.
• Geographic eligibility; USDA loans are intended for properties located in designated rural or suburban areas ensuring access to housing opportunities in these regions.
• Borrowers interested in a USDA loan must meet household income requirements.