Room to put down roots.
A USDA loan helps people buy homes in eligible rural and small-town areas. It is backed by USDA Rural Development and made by private lenders.
Who it is for
- Buyers looking in areas the USDA defines as rural, which includes many small towns
- Households whose income is within the USDA limit for the area
- People buying a home they will live in as their main residence
What you will need
- Photo ID for each borrower
- Recent pay stubs and the last two years of W-2s, or tax returns if you are self-employed
- Recent statements for the accounts holding your down payment and reserves
- Permission to check your credit
- A property address, so eligibility can be checked on the USDA map
- Income information for every adult in the household
Good to know
- Eligible borrowers may be able to buy without a down payment.
- Both the property location and the household income have to qualify.
- USDA loans have an upfront fee and an annual fee that is paid monthly.
- Parts of Southern Colorado outside the city centers may be eligible. The USDA publishes a map you can search by address.
Common questions
Does it have to be a farm?
No. USDA home loans are for ordinary houses in eligible areas. The property cannot be used mainly to produce income.
How do I find out whether an address is eligible?
The USDA has an online eligibility map. Enter the address and it tells you whether the location qualifies.
Is there an income limit?
Yes. The limit depends on the county and the size of your household, and it counts the income of all adults living in the home.