USDA Loans
Perfect for low-to-moderate income buyers purchasing homes in eligible rural areas!
Backed by the U.S. Department of Agriculture, this program helps make homeownership affordable in rural communities, often with no down payment required.
Why Choose a USDA Loan?
Buy a home with potentially zero down payment (100% financing) if you meet income and property eligibility requirements.
Access affordable financing specifically designed to support homeownership in designated rural and suburban areas, promoting community growth.
Key Features:
Zero Down Payment: 100% financing often available.
Rural Properties: For homes in USDA-eligible areas.
Income Limits: Must meet area income requirements (typically ≤115% AMI).
Guarantee Fees: Includes Upfront and Annual fees.
Dreaming of a home in a rural setting?
Find out if you qualify for a USDA Loan!
USDA Loan Frequently Asked Questions
Common questions Peak Capital Mortgage LLC answers for borrowers considering a USDA Rural Development loan.
What is a USDA loan and who qualifies for one?
A USDA loan is a government-backed mortgage program through the U.S. Department of Agriculture designed to help low-to-moderate income buyers purchase homes in eligible rural and suburban areas. To qualify, the property must be in a USDA-designated eligible area, the borrower must meet income limits (typically up to 115% of the area median income), and standard credit and debt-to-income requirements apply. USDA loans are available to U.S. citizens and eligible non-citizens who intend to use the home as their primary residence.
Do USDA loans require a down payment?
No — USDA loans offer 100% financing, meaning qualified buyers can purchase a home with zero down payment. This makes USDA one of the only true no-down-payment mortgage options available today, alongside VA loans. Closing costs may still apply, though they can sometimes be rolled into the loan if the appraised value supports it, or covered through seller concessions negotiated at closing.
What are the USDA loan income limits?
USDA income limits are set at 115% of the Area Median Income (AMI) for your specific county and household size. Limits vary significantly by location — a household of four in rural Colorado may have a different cap than one in rural Texas. The USDA updates these limits periodically. Your Peak Capital Mortgage loan officer can run a quick eligibility check based on your county and household size to confirm whether you fall within the current income guidelines.
What property types are eligible for USDA financing?
USDA loans are limited to primary residences — investment properties and vacation homes are not eligible. The home must be a single-family dwelling located in a USDA-designated rural or eligible suburban area. Modular homes may qualify, but manufactured homes have more limited eligibility. The property must also meet USDA's minimum standards for safety, soundness, and sanitation as determined by a USDA appraisal. Eligible area maps are available on the USDA's official website and can change when new census data is released.
What are the USDA loan mortgage insurance requirements?
USDA loans require two forms of mortgage insurance: an upfront guarantee fee (currently 1% of the loan amount) which is typically rolled into the loan, and an annual fee (currently 0.35% of the outstanding loan balance) paid monthly. These fees are significantly lower than FHA mortgage insurance premiums, making USDA one of the most cost-effective low-down-payment options available. Unlike FHA MIP, the USDA annual fee decreases over time as your loan balance is paid down.
Does Peak Capital Mortgage LLC offer USDA loans in all 13 states?
Yes. Peak Capital Mortgage LLC originates USDA loans across all 13 states we are licensed in: Alabama, Arizona, Colorado, Florida, Idaho, Kansas, Louisiana, Mississippi, Montana, New Mexico, South Dakota, Texas, and Wyoming. USDA eligibility also requires the property to be in a designated rural or suburban eligible area, so call us at (970) 577-9200 and we can run an address-level eligibility check in minutes.
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Our success has been built on competitive rates designed to meet your unique financing goals while delivering exceptional customer service. At Peak Capital Mortgage LLC, we pride ourselves on treating every client with honesty and integrity.
Company NMLS: 2347925
Licensed in: AL, AZ, CO, FL, ID, KS, LA, MS, MT, NM, SD, TX and WY
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