USDA home loans offer 100% financing for eligible properties outside denser urban areas, through the USDA Guaranteed Loan program. Eligibility depends on where the home is and on your household income, not on whether you've owned a home before. Marc Hendrickson can check both before you get too far into a search.
When it fits, USDA is one of the least expensive ways to buy with little or nothing down. Here's how its costs compare.
USDA fees reflect the fiscal year 2026 schedule. USDA reviews them each federal fiscal year.
A USDA loan has to pass two separate checks. Both are worth confirming before you fall in love with a house.
The home must sit in an area on USDA's eligibility map. Some areas in the foothills and more rural parts of Pierce County may qualify, while most of the denser South Sound suburbs won't. The map decides, not the look of the neighborhood.
Total household income can't exceed 115% of the area median income, and USDA counts the income of every adult in the household, not just the borrowers.
USDA loans are only for homes you'll live in. Second homes and investment properties don't qualify.
Beyond the location and income tests, USDA underwriting looks a lot like other loan programs.
Many lenders look for about 640 or higher for an automated USDA approval. Lower scores may still work with manual underwriting.
Commonly around 29% of income for housing costs and 41% for total monthly debt, with some flexibility for strong files.
100% financing is the core benefit. Gift funds and seller contributions can help with closing costs.
There's no set price cap. Your loan amount is limited by your income and your ability to repay.
The appraisal must show the home is safe, sound, and sanitary, similar to FHA property standards.
A newly built home can qualify if the property and builder meet USDA requirements.
A USDA purchase follows the same basic path as any other mortgage, with two eligibility checks at the front and one extra review near the end. Knowing that ahead of time keeps your closing date realistic.
Before you get attached to a house, confirm it sits inside a USDA-eligible area. Marc can check any specific address against the official map.
Add up income for every adult who will live in the home and compare it with the limit for your county and household size.
Marc reviews your credit, income, and debts and issues a pre-approval, so you know your price range and can make a confident offer.
Your agent writes the offer. Because USDA requires no down payment, asking the seller to help with closing costs can keep your cash to close low.
The appraisal confirms the home's value and condition, and the loan is fully underwritten to USDA guidelines.
USDA reviews the approved file and issues its guarantee commitment. That extra step can add a few days, so Marc builds it into your closing timeline from the start.
Marc checks a specific address against the USDA map before you write an offer, so you're not guessing based on how rural an area looks.
If a home doesn't qualify for USDA, Marc will show you the next-best option, often FHA or a 3% down conventional loan. FHA loans.
Marc funds and closes loans directly and sends funds to escrow early on closing day, so your file isn't stuck in someone else's queue.
Is my area eligible for a USDA loan?
Eligibility comes from USDA's official map, not how rural a neighborhood feels. Boundaries can run street by street, and the map is updated from time to time, so Marc checks the specific address for you before you get too far into a search.
Do I need a down payment for a USDA loan?
No. USDA loans offer 100% financing for eligible borrowers and properties. You'll still have closing costs, but gift funds and seller contributions can cover some or all of them.
Are there income limits for USDA loans?
Yes. Household income can't exceed 115% of the area median, and USDA counts every adult in the household, even someone who isn't on the loan. Limits vary by county and household size, and certain expenses such as childcare can be deducted when calculating it.
What does a USDA loan cost?
A 1% upfront guarantee fee, which can be financed, plus a 0.35% annual fee paid monthly. On a $400,000 loan, that's $4,000 up front and about $117 a month in the first year, typically less than FHA's mortgage insurance on the same loan.
Do I have to be a first-time buyer?
No. USDA loans are open to repeat buyers too, as long as you meet the location and income tests and will live in the home. You generally can't own another adequate home nearby at the same time.
Is there a maximum home price for USDA?
There's no set price cap. How much you can borrow depends on your income, debts, and ability to repay.
Can I use a USDA loan for new construction?
Yes, a newly built home can qualify if the property and the builder meet USDA requirements.
How does USDA compare with FHA?
USDA requires no down payment and usually has lower ongoing fees, but it's limited to eligible areas and income levels. FHA works anywhere, with 3.5% down.
Turn Two Mortgage is based in Lake Tapps, and Marc works with USDA borrowers throughout Pierce and south King counties. See what buying and owning a home looks like in each community we serve.
Quick, custom quotes with no pressure, and a straight answer on eligibility.
