04 · Loan Program

USDA Loans

100% financing for buyers in eligible rural and suburban areas — one of the most underutilized no-down-payment programs in the country.

Who a USDA Loan Is For

Buyers purchasing in USDA-eligible areas, which include most suburban markets and all rural zones outside major metro cores
Moderate-income households whose earnings fall at or below 115% of the area median income
Buyers who want zero down payment but do not have VA eligibility
First-time and repeat buyers who qualify on income and want to minimize upfront cash requirements

How It Works

From first conversation
to closing day.

Eligibility Check

Tanya verifies the property address in the USDA eligibility map and confirms your household income falls within program limits for your county.

Pre-Approval

Your credit, income, and debt are reviewed. USDA underwriting uses both a debt-to-income ratio and a residual income test to confirm affordability.

USDA Appraisal & Approval

The property is appraised and the file is submitted to the USDA Rural Development office for conditional commitment — adding approximately 1–2 weeks to the timeline.

Closing

A 1% upfront guarantee fee is financed into the loan. An annual fee of 0.35% is collected monthly as part of the payment.

Key Benefits

What makes this program
work for the right borrower.

Zero Down Payment

Finance 100% of the purchase price — including the guarantee fee — with no down payment required. Available in a far wider geographic footprint than most buyers expect.

Below-Market Rates

USDA Guaranteed loans are issued by private lenders at competitive rates. USDA Direct loans carry fixed rates as low as 1% for the lowest-income borrowers.

Low Monthly Insurance Cost

The annual fee of 0.35% of the outstanding loan balance is significantly lower than FHA MIP (0.55%+), making USDA cheaper month-to-month for eligible buyers.

Requirements Snapshot

Quick-reference guidelines.

Property Location	Must be in a USDA-eligible rural or suburban area (searchable at usda.gov; covers most areas outside major city centers)
Income Limits	Household income at or below 115% of area median income for the county; limits vary by household size
Minimum Credit Score	640 preferred for automated approval; lower scores require manual underwriting
Down Payment	0% required; guarantee fee can be financed
Primary Residence Only	USDA loans are for owner-occupied primary residences only — not investment properties or vacation homes

Edge Home Finance, LLC • NMLS #891464 • 5860 Baker Road, Minnetonka, MN 55345

Equal Housing Opportunity Lender. This is not a commitment to lend. All loans subject to credit approval.

Licensed in: Georgia and Florida • NMLS Consumer Access: www.nmlsconsumeraccess.org • Licensing & Disclosures

Equal Housing Opportunity