A USDA Loan for Life Outside the City.
In eligible rural and suburban areas, USDA financing is available to qualified buyers within household income limits.*
Homeownership beyond the city.
USDA guarantees these loans for homes in areas it designates as rural, under its own rules.
- Household income from every adult in the home stays under the county limit
- Buyers who meet USDA’s test for traditional conventional credit are ineligible
- Each borrower must occupy the house; co-borrowers living elsewhere are ineligible
- Without a GUS Accept, housing costs stay within 29% and total debt within 41%*
- Seller-paid closing costs can reach 6% of the price on a purchase
- An upfront guarantee fee that can be financed, plus an annual fee
Rural housing financing in eligible areas*
No cash back on a USDA refinance
Duplexes through fourplexes are excluded
IRS transcripts for every adult household member
Rural housing financing on an eligible property*
ARMs and interest-only loans excluded
What is the Saxton USDA Loan?
Two income tests, one rural address and one primary home.
The Saxton USDA Loan is a full-featured mortgage that is guaranteed by the U.S. Department of Agriculture to support homeownership in eligible rural and suburban areas.
USDA runs two income tests. Annual household income, counting every adult who lives in the home, must fall below the moderate-income limit for the area. Repayment income counts only the people signing the note, and it must be likely to last for three or more years of the mortgage.
Gift money can help you close, but USDA does not let it serve as reserves, though it sets no reserve requirement in the first place. Cash kept at home is not an acceptable source. Any single deposit over $1,000 has to be sourced before closing.
Why choose the Saxton USDA Loan?
Built for buyers in eligible rural areas.
Some States Require Counseling
Certain USDA Rural Housing state offices require homeownership counseling for first-time homebuyers. When you apply, we check whether your state office is one of them.
Moderate-Income Households
Designed around area household income limits to support eligible buyers.
Keeping Your Current Home
You can keep a home you already own only if it no longer meets your needs, such as a job relocation, a growing family or a divorce. You may own just one other single-family home.
Refinance After 12 Months
To refinance a USDA loan without cash out, the current loan must be at least a year old when the request is made, the new rate cannot exceed the old one, and one original borrower has to stay on.
Rural Housing Financing
Many buyers in eligible areas can purchase with less cash than other programs require, subject to USDA guidelines.*
ADUs For Family, Not Rent
At one program, an accessory dwelling unit that supports your household, such as space for a multigenerational family, is eligible. An ADU built to produce rental income is not.
Hear From Homeowners Like You
Frequently Asked Questions
Answers on USDA income limits, rural property rules, credit and refinancing.
Saxton Mortgage does. At least one USDA program we offer finances a primary residence in an eligible rural area starting at a 600 credit score, whether USDA’s automated system accepts the file or it is underwritten manually. Eligible homes include one-unit homes, condos, modular homes, and manufactured homes.
It depends on how the automated underwriting system reads the file. When the system accepts it, the ratios follow that decision. When it comes back Refer and the file is underwritten manually, at least one program holds the housing ratio at 29 and the total debt ratio at 41. A validated credit score of 680 or higher, plus one documented compensating factor, moves those to 32 and 44. On a purchase, 32 is the ceiling.
Yes. Yes. Annual income from all adult household members has to be certified, not only the people on the note, and that documentation stays in the file regardless of what the automated system recommends. IRS transcripts are required for those household members. An adult who will never be on the loan can still push the household over the area income limit.
No, a USDA loan cannot finance a working farm, any duplex-to-fourplex building, or unimproved land. Properties used mainly for agriculture or commercial enterprise, such as dairy farms or hog barns, are ineligible. Single-family homes, PUDs and condos in an approved project are eligible. Learn more about cash-out refinancing.
One program starts USDA loans at a 580 score, even when you use nontraditional credit, and requires 620 when the home is manufactured. Nobody on the loan there can be missing a credit score. On a manually underwritten file, a housing ratio waiver requires 680 for all applicants.
No, a USDA loan needs no down payment on an eligible home, and you can roll USDA’s upfront fee into the balance. On a purchase, closing costs can also be financed when the appraisal comes in above the contract price. Gifts, a gift of equity and down payment assistance are all eligible.
Yes, one program limits USDA purchase loans to a fixed rate. Adjustable-rate, interest-only and balloon mortgages are all ineligible there, and so are loans with prepayment penalties. Temporary buydowns are allowed there under set limits.
No, cash-out refinancing is off the table with a USDA loan. A USDA refinance can cover the existing balance, accrued interest, the financed guarantee fee, reasonable closing costs and a new escrow account, but no cash back beyond refunds of fees you paid in advance.
Zone loan is an informal name for the USDA guaranteed home loan, because eligibility depends on the property sitting inside a USDA eligible area rather than on a set loan limit. Plenty of addresses on the edge of a metro qualify, so do not assume yours is out. You can check any address on the USDA Rural Development property eligibility map, or send it to us and we will check it for you along with the household income limit for your area. Once the address clears, the program works as described on this page: purchase or rate and term refinance, fixed rate, no cash out.
Find out what you qualify for
Give us the property address and your household size; we compare both with USDA’s rural map and income limit ahead of any purchase agreement.
Get Pre-Qualified*Loan amounts, rates, terms, and down payment requirements are subject to credit approval, income and asset verification, and program eligibility. USDA property and income eligibility are set by the U.S. Department of Agriculture. Down payment and cash-out limits vary by occupancy, credit score, and documentation type. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.