Pilgrim Mortgage

USDA Loans

USDA Loans

Your Path Home, With No Down Payment

Despite the name, USDA loans aren’t only for farmers, and you don’t have to buy farmland. They’re designed to help families buy homes in small towns, rural communities, and many suburbs. If you’ve been waiting to save up a big down payment, a USDA loan may get you home sooner.

how it works:

  1. Check the location.
    The home must be in a USDA-eligible area.     Check an address on the USDA eligibility map.

  2. Check your household income.
    Your total household income must be within the limit for your area and household size.

  3. Get pre-approved.
    We review your income, credit, and debts to confirm you qualify.

  4. Find your home and close.
    Choose a home in an eligible area, and the upfront guarantee fee can typically be rolled into your loan.

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why choose a usda loan?

No Down Payment Required
Eligible buyers can finance up to the full purchase price of the home.

Lower Ongoing Fees
USDA’s annual fee is typically lower than FHA’s monthly mortgage insurance, which helps keep your payment down.

Competitive Interest Rates
The USDA guarantee helps lenders offer strong rates.

Closing Cost Flexibility
Sellers can contribute toward closing costs, and in some cases, closing costs can be financed if the home appraises for more than the purchase price.

New or Existing Homes
Buy an existing home or a newly built one in an eligible area.

Frequently Asked Questions

  • No. USDA loans are for homes, not farms. You can buy a regular single-family home in an eligible area.

  • More places than you might think. Many small towns and suburbs on the edges of cities qualify. The easiest way to know is to check the address on USDA’s eligibility map.

  • USDA doesn’t set a fixed loan limit like other programs. Instead, how much you can borrow depends on your income and what you can afford to repay, along with the household income limit for your area.

  • USDA looks at total household income to determine eligibility, even from members who aren’t on the loan. Certain deductions, such as those for children or child care, may lower the income that counts.

  • No. USDA loans are only for homes you’ll live in as your primary residence.

Let’s see if you qualify. Tell us where you want to live, and we’ll help you find out if a USDA loan can get you there.

Find a Loan Officer