USDA home loan eligibility for rural and small-town buyers
Stop 6: what to do next
Plain answer
Once the address and household income look eligible, contact lenders approved for the USDA guaranteed program, get preapproved, and make your offer with the program named. After a signed contract, the lender orders an appraisal, underwrites the file and sends it to USDA for its guarantee before closing.
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The route
- Confirm address and income on the USDA eligibility site.
- Ask lenders whether they make USDA guaranteed loans in your state.
- Get preapproved and compare Loan Estimates.
- Make an offer that names the loan type.
- Appraisal, underwriting and the USDA review.
- Closing.
If income is lower
Households below the guaranteed program's range may look at the USDA direct loan program through their state office.
Free help
A HUD-approved housing counselor can walk through budgets and paperwork with you.
Neighbors also ask
How do I apply for a USDA home loan?
For the guaranteed program, apply with a private lender approved for USDA loans. For the direct program, apply through your USDA Rural Development state office.
Does USDA approve the loan itself?
For guaranteed loans the lender underwrites the file and USDA reviews it to issue its guarantee before closing.