Loan options / USDA loans
Zero down,outside thecity limits.
The USDA Rural Development loan is the other zero-down mortgage. It is available to moderate-income buyers in eligible rural and suburban areas, which covers far more of the country than the name suggests, including large parts of every state Patriot lends in.
Who it's for
For buyers in eligible areas with moderate income.
Two tests decide eligibility: where the home is, and how much your household earns. Your loan officer checks both in minutes.
Eligible rural and suburban areas
Most towns under 35,000 people qualify, plus the outer edges of many metro areas. The USDA map is updated periodically; we check the exact address.
At or below 115% of the area median
The limit counts everyone in the household, not just the borrowers, and is adjusted for household size.
No first-time requirement
Anyone who will occupy the home and does not currently own an adequate home nearby can use the program.
No savings for a down payment
Closing costs can be paid by the seller or, when the appraisal supports it, financed into the loan.
What you'll need
What USDA looks for.
- Property locationThe address must be in a USDA-eligible area. We run it through the USDA map before you write an offer.
- Household incomeTotal household income at or below 115% of the area median for your county and household size.
- Credit640 is the common threshold for automated approval. Lower scores can be manually underwritten with compensating factors. Patriot's minimum varies by program and is subject to change; your loan officer will confirm it.
- Debt-to-incomeGuidelines target 29% for housing and 41% total, with flexibility through automated underwriting.
- OccupancyPrimary residence only, and the home must be modest for the area: no income-producing farms or in-ground pools in most cases.
- The propertyA standard appraisal plus a check that the home meets HUD minimum property standards.
How it works
From first call to closing. Five cards, one person the whole way.
Talk to your loan officer
One call, one person. You get a name, an NMLS number, and a direct line, and that person stays on your file until you close.
Get pre-approved
We verify income, pull credit, and lock down what you can afford. Most pre-approvals are ready within a business day.
Shop with confidence
Your pre-approval letter tells sellers you are a real buyer. Your loan officer is available to your agent for questions on any offer.
Appraisal and underwriting
The appraisal is ordered the day you go under contract. Every condition and milestone comes to you by text and email.
Close and move in
Sign, fund, and get your keys. No prepayment penalty if you refinance or sell later.
Ways to use it
Purchase and refinance.
Purchase
Existing homes, new construction, approved condos, and manufactured homes on permanent foundations in eligible areas.
Streamlined-assist refinance
Lower the payment on an existing USDA loan with no appraisal and minimal documentation.
Rate-and-term refinance
Refinance an existing USDA loan to a better rate or term.
New construction
A USDA single-close construction loan can finance the build and the permanent mortgage in one transaction.
Questions
Straight answers.
Is my area really rural?
Probably more of it than you think. The USDA definition is generous; suburbs and small cities outside major metros routinely qualify. Send us the address and we will check.
What are the income limits?
They depend on your county and household size. In many areas the limit for a household of one to four people is above $110,000, and higher for larger households. Your loan officer will confirm the number for your county.
How does the USDA fee compare to FHA mortgage insurance?
USDA charges 1% upfront and 0.35% per year. FHA charges 1.75% upfront and 0.55% per year. On the same loan amount USDA is noticeably cheaper.
Can closing costs be financed?
Sometimes. If the home appraises above the purchase price, the difference can cover closing costs. Seller credits of up to 6% are also allowed.
Are there loan limits?
Not in the traditional sense. The loan amount is capped by what you can afford under the debt-to-income guidelines and the income limit for your area.
Is USDA only for first-time buyers?
No. You cannot currently own an adequate home within commuting distance, but prior ownership is fine.
Talk to a USDA loan officer in your state.
Licensed by name, in the state you are buying in. No call center, no hand-offs.
USDA loan eligibility, fees, and income limits are set by the U.S. Department of Agriculture Rural Development program and are subject to change. Patriot Home Mortgage is an approved USDA lender and is not a government agency. Belem Servicing LLC d/b/a Patriot Home Mortgage, NMLS #715386. Equal Housing Lender.