100% Financing for Rural and Suburban Buyers.
USDA Rural Development loans offer zero down payment and competitive fixed rates for eligible buyers in qualifying rural and suburban areas — no down payment required.
0%
Min. Down Payment
640
Min. Credit Score
115% of Area Median
Income Limit
0.35% of Loan Balance
Annual Fee
0%
Down Payment
640
Min. Credit Score
1.00%
Guarantee Fee
0.35%
Annual Fee
115% AMI
Income Limit
Overview
Zero Down in Eligible Rural and Suburban Areas
The USDA Guaranteed Loan Program is one of the most underutilized mortgage programs in America — and one of the most powerful. Backed by the U.S. Department of Agriculture, it offers 100% financing for eligible buyers purchasing in qualifying geographic areas, which include a surprisingly large portion of suburban and rural communities in Oregon and California.
USDA is not just for farmland. Many smaller cities, suburbs, and towns qualify. If your target area falls within an eligible zone, USDA delivers zero down payment, a 30-year fixed rate, and some of the lowest mortgage insurance costs of any program — even lower than FHA.
Who This Is For
Key Features
What Makes This Program Work
Zero Down Payment
100% financing — purchase a home with no down payment required. Closing costs may be financed in some cases or covered with seller concessions.
Competitive Fixed Rates
USDA rates are set by the market and competitive with FHA and conventional programs — often slightly below FHA in the right conditions.
Low Annual Fee
USDA's annual guarantee fee of 0.35% of the loan balance is significantly lower than FHA's annual MIP — resulting in a lower monthly payment.
Broad Eligibility Map
More areas qualify than most buyers expect. Many Oregon and California suburbs and smaller cities are within USDA eligible boundaries.
No PMI
USDA does not charge traditional PMI. Instead, a small upfront guarantee fee (1%) and annual fee (0.35%) apply — typically cheaper than conventional PMI.
30-Year Fixed Only
USDA is a single, straightforward product: a 30-year fixed rate loan. Predictable, consistent, and no rate surprises over time.
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Requirements
General Qualifications
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Licensed in Oregon & California · NMLS #1498678
FAQ
Common Questions
USDA Loan Payment Calculator
Enter any purchase price to instantly see your zero-down monthly payment — principal, interest, and 0.35% annual fee — side-by-side against FHA and Conventional for a complete cost comparison.
USDA Guaranteed Loan Calculator
1.00% upfront · 0.35% annual fee · 0% down · rural properties
USDA Guaranteed loans are for primary residences in USDA-eligible rural areas with household income at or below local limits.Check property eligibility →
No down payment required — 100% financing available
Upfront Guarantee Fee
$3,000
1.00% of base loan — financed into loan
adds $3,000 to balance
How USDA Guarantee Fees Work
Total Monthly Payment
$1,761/mo
P&I Payment
$1,673.18
Annual Fee
$87.50
Loan Breakdown
Purchase Price
$300,000
Down Payment
None required — 100% financing
$0 (0.0%)
Base Loan Amount
$300,000
Upfront Guarantee Fee
1.00% of base loan — financed in
+ $3,000
Total Financed Loan
$303,000
Annual Fee Does Not Cancel
Unlike FHA MIP (which can cancel after 11 years) or conventional PMI (which cancels at 80% LTV), the USDA 0.35% annual fee remains for the life of the loan — approximately $87.50/mo for the full 30-year term. Total estimated annual fee cost: $31,500.
USDA vs. FHA: Lower Fees, $0 Down
USDA's upfront fee (1.00%) and annual fee (0.35%) are both lower than FHA's (1.75% / 0.55%), and you put nothing down. On a $300,000 purchase, that's $3,000 upfront vs. $5,066 for FHA — saving $2,066 in financed costs.
| Year | Principal | Interest | MIP | Balance |
|---|---|---|---|---|
| 1 | $4,272 | $15,806 | $1,050 | $298,728 |
| 2 | $4,502 | $15,576 | $1,050 | $294,225 |
| 3 | $4,744 | $15,334 | $1,050 | $289,481 |
| 4 | $5,000 | $15,079 | $1,050 | $284,481 |
| 5 | $5,268 | $14,810 | $1,050 | $279,213 |
| 6 | $5,552 | $14,526 | $1,050 | $273,661 |
| 7 | $5,850 | $14,228 | $1,050 | $267,811 |
| 8 | $6,165 | $13,913 | $1,050 | $261,646 |
| 9 | $6,497 | $13,582 | $1,050 | $255,149 |
| 10 | $6,846 | $13,232 | $1,050 | $248,303 |
| 11 | $7,214 | $12,864 | $1,050 | $241,089 |
| 12 | $7,602 | $12,476 | $1,050 | $233,487 |
| 13 | $8,011 | $12,067 | $1,050 | $225,476 |
| 14 | $8,442 | $11,636 | $1,050 | $217,034 |
| 15 | $8,896 | $11,182 | $1,050 | $208,138 |
| 16 | $9,374 | $10,704 | $1,050 | $198,764 |
| 17 | $9,878 | $10,200 | $1,050 | $188,886 |
| 18 | $10,410 | $9,668 | $1,050 | $178,476 |
| 19 | $10,970 | $9,109 | $1,050 | $167,506 |
| 20 | $11,560 | $8,519 | $1,050 | $155,947 |
| 21 | $12,181 | $7,897 | $1,050 | $143,765 |
| 22 | $12,836 | $7,242 | $1,050 | $130,929 |
| 23 | $13,527 | $6,551 | $1,050 | $117,402 |
| 24 | $14,254 | $5,824 | $1,050 | $103,148 |
| 25 | $15,021 | $5,057 | $1,050 | $88,127 |
| 26 | $15,829 | $4,249 | $1,050 | $72,298 |
| 27 | $16,680 | $3,398 | $1,050 | $55,618 |
| 28 | $17,577 | $2,501 | $1,050 | $38,041 |
| 29 | $18,522 | $1,556 | $1,050 | $19,519 |
| 30 | $19,519 | $560 | $1,050 | Paid off |
| Total | $303,000 | $299,344 | $31,500 | paid off |
USDA upfront guarantee fee 1.00% of base loan amount, financed into the loan. Annual fee 0.35% of outstanding balance, assessed monthly for the life of the loan — does not cancel. Results are estimates only and do not constitute a loan commitment or guarantee of rate. Income and property eligibility subject to USDA guidelines. Lumen Mortgage Corporation · NMLS #1498678 · Licensed in Oregon & California.
Side-by-Side Comparison
How Does USDA Compare?
Compare key requirements, costs, and features at a glance — so you can choose the right loan for your situation.
USDA vs. FHA vs. Conventional — Side by Side
Zero-down options for eligible rural and suburban areas
| USDA | FHA | Conventional | |
|---|---|---|---|
| Down Payment | 0% | 3.5% | 3–20% |
| Upfront Fee | 1.00% Guarantee Fee | 1.75% UFMIP | None |
| Annual Fee | 0.35% | 0.55% MIP | PMI varies (0.3–1.5%) |
| Fee Duration | Life of loan | Life of loan (<10% down) | Cancels at 20% equity |
| Credit Score | 640 | 580 | 620 |
| Income Limit | 115% of AMI | None | None (HomeReady: 80% AMI) |
| Geographic Restriction | USDA-eligible areas only | None | None |
| Property Types | Primary only — single family | Primary only — 1–4 unit | Primary, 2nd home, investment |
From the Blog
Further Reading
First-Time BuyersUSDA Loans in Rural Oregon & California: 2026 Income Limits Are Higher — and More First-Time Buyers Qualify Than You Think
The USDA Guaranteed loan offers 100% financing, below-market fees, and no monthly PMI — and the 2026 income limit increases have opened the door to thousands of additional buyers across Oregon's Pacific coast, the Willamette Valley fringes, and California's rural northern counties. Here's everything first-time buyers need to know.
OregonOregon First-Time Homebuyer Programs You May Not Know About
Oregon has several programs specifically designed to help first-time buyers get into a home with less money down and better rates. Here's what's available and how to qualify.
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