Is my property in a USDA-eligible area?
Probably more often than you'd guess. USDA-eligible areas include rural areas with populations under 35,000 — but the definition is broader than "rural" suggests. Many suburban subdivisions on the edge of metro areas qualify. The authoritative tool is the USDA eligibility map at eligibility.sc.egov.usda.gov — type in the address, and the map tells you yes or no. We check eligibility on every USDA scenario before quoting.
What is the USDA income limit?
Total household income (every adult earning income in the home, not just the borrower) must be at or below 115% of the area median income for the property's county. Limits are per-county and adjust upward for household size — bigger households get higher limits. The authoritative lookup is at eligibility.sc.egov.usda.gov. Roughly: a 4-person household in a moderate-cost county lands around $110K–$130K [VERIFY 2026 county-specific].
How is USDA different from FHA?
USDA is 0% down vs FHA's 3.5% down — bigger LTV. USDA mortgage insurance is cheaper than FHA's (0.35% annual vs 0.15%–0.75%). USDA has a 115%-AMI income cap; FHA has no income limit. USDA is geographically restricted to eligible rural areas; FHA works anywhere. USDA is 30-year fixed only; FHA offers 15-year and ARMs too. Use USDA if the property is eligible and the borrower fits the income cap; otherwise FHA is the next default.
Can I use a USDA loan for a second home or investment property?
No. USDA is owner-occupant-only, primary-residence only. The borrower must occupy the property within 60 days of closing and continue to occupy it as their primary residence. No second homes, no investment property, no cash-out refinances on the Streamlined Assist (it's rate-and-term only).
How long does USDA mortgage insurance last?
Like FHA on a <10%-down file, USDA mortgage insurance lasts the life of the loan — there is no automatic cancellation when the borrower hits 80% LTV via amortization or appreciation. The only way to remove USDA MI is to refinance into a conventional loan once equity reaches 20%. Plan accordingly: USDA is the right entry product, and many borrowers refinance to conventional 5–10 years later as equity builds.
What credit score do I need for USDA?
USDA itself sets no hard credit-score minimum. Most lenders apply a 640 minimum overlay because USDA's automated underwriting (GUS — Guaranteed Underwriting System) treats files below 640 as manual underwriting, which is more time-consuming. We can do manual-underwriting USDA on stronger compensating factors at lower scores, but plan for 640+ as the default.
Are condos eligible for USDA?
Yes, but only if the project is on USDA's approved condo project list (or qualifies via USDA project review). Most rural-area condos are eligible; urban-edge condos vary. SFRs and PUDs are the dominant USDA property types and have no project-approval requirements. We check project status before issuing a pre-approval on a USDA condo scenario.
What is the USDA Direct loan program (and is that what we're talking about)?
No. USDA runs two separate programs: Section 502 Guaranteed (originated by lenders like us, available everywhere USDA-eligible) and Section 502 Direct (originated directly by USDA Rural Development to very-low-income borrowers, with subsidized rates as low as 1%). This pillar covers Section 502 Guaranteed. Section 502 Direct is administered through USDA local field offices — we'll point a borrower there if their income falls below the Direct program's very-low-income threshold (typically <50% AMI).