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USDA Loans: 0% Down for Homes in Eligible Areas

Buy a home with 0% down in a USDA-eligible area. Check your income and address with a free rate quote.

  • Most Areas Outside Major Cities Eligible
  • Income Limit Set at 115% of Area Median
  • Childcare Costs Can Reduce Counted Income
Happy Austin Capital Mortgage homeowners
30+ years lending · 500+ reviews · Licensed in 26 states
Address and income check
USDA LOAN0% down payment30-yr fixed · eligible areas
Austin Capital Mortgage
Your pre-approval checklist is ready
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Couple standing in front of their new home
30+Years lending, since 1996
500+Reviews
26States licensed
0%Down payment in eligible areas
Quick fit check

Is a USDA Loan Right
for You?

A USDA loan can open the door to 0% down for eligible buyers in eligible areas. If one of these sounds like you, we can help.

Not sure? A loan officer can check your income and the home's address in one call.

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USDA allows 0% down, so you don’t need a down payment to buy.

We’ll show you the closing costs and the full payment before you commit.

The income limit is 115% of your area’s median income, and it rises with household size.

We’ll check your household against your county’s limit.

USDA covers many small towns and suburbs, not just farmland. Eligibility depends on the exact address, which USDA’s map decides.

We’ll check the home’s address before you make an offer.

Limits rise with household size, and qualified childcare costs for children 12 and under can be deducted from counted income.

We’ll show you how your household counts.

Most lenders look for a 640 score and a clean recent history, with some room when other parts of your file are strong.

We’ll show you where your score stands before you apply.

Where programs allow it, down payment assistance can pair with a USDA loan.

We’ll show you which assistance options apply where you’re buying.

Requirements

USDA Loan Requirements

USDA sets the program rules and each lender adds its own, so we check your income and the home's address up front.

USDA guaranteed loans offer 100% financing, so no down payment is required.

We’ll show you the cash you need for closing costs.

Income from all adults in your household counts, even those not on the loan.

Limits vary by county and household size, and we’ll check yours.

The home must be your primary residence: a single-family home, townhome, approved condo, or eligible manufactured or modular home in a USDA-eligible area.

We check the address against USDA’s eligibility map before you make an offer.

USDA sets no program minimum. Most lenders look for a 640 score and no recent late payments, bankruptcy or foreclosure.

Stronger areas of your file can offset a weaker one.

The benchmarks are 29% for housing costs and 41% for total debt, measured against gross monthly income.

With a 680+ score and a compensating factor, such as 3 months of reserves, USDA allows up to 32% and 44%.

The 1% upfront fee is usually paid at closing and can sometimes be rolled into the loan. The 0.35% annual fee is split into your monthly payment.

We’ll show you the full payment, fees included.

Requirements vary by lender and loan scenario. Meeting the minimums does not guarantee approval.

Income check115% of area median
Address checkUSDA eligibility map
Single-family, townhome or approved condo
Family sitting together on the porch steps of their home
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What Homeowners Say About Working With ACM

Your USDA Loan, From Quote to Closing

From quote to closing in 5 easy steps.

01Homebuyer filling out an online rate quote form on a laptop

Get Your Free Rate Quote

Fill our 2 min form to see live rates based on your scenario. No credit check, no obligation.

01
02Homebuyers signing pre-approval documents with a loan officer

Check Eligibility and Get Pre-Approved

We check your household income and the home’s address against USDA’s rules, review your credit and documents, and issue your pre-approval letter.

02
03Single-family home a buyer is making an offer on

Make Your Offer

Shop with a pre-approval letter so sellers know your financing has been reviewed.

03
04Magnifying glass next to a model house, representing the FHA appraisal

Appraisal and Underwriting

An appraiser confirms the home’s value, and your file goes through underwriting and USDA’s guarantee review. Your loan officer sends updates every 48 to 72 hours.

04
05New homeowner holding house keys at the entrance

Close and Move In

Sign your closing documents, get your keys and move in within 60 days of closing, as USDA requires.

05
Compare loans

USDA vs. FHA vs. Conventional Loan

All three can work with a small down payment, and USDA can work with none in eligible areas. We'll help you pick the one that fits your income, credit and the home you want.

USDA loans compared with FHA loans and conventional loans
Feature USDA Loan FHA Loan Conventional Loan
Minimum down payment 0% 3.5% As little as 3% for first-time or income-eligible buyers
Income limit 115% of area median income None Only on income-based programs
Property Primary residence (single-family, townhome, approved condo or eligible manufactured home) in an eligible area 1 to 4 unit primary residence, anywhere Primary, second home or investment, anywhere
Mortgage insurance or fees 1% upfront plus 0.35% annual guarantee fee 1.75% upfront plus an annual premium Private mortgage insurance with under 20% down
Credit score No USDA minimum; 640+ with most lenders 580+ for 3.5% down Set by lender and program
Often a good fit for Moderate-income buyers purchasing in eligible areas Scores of 580 to 680 or a higher debt-to-income ratio Stronger credit and plans to drop mortgage insurance later
FHA vs. USDA guide FHA loans Down payment assistance guide

Terms vary by lender and loan scenario.

Talk to a Mortgage Expert About Your USDA Loan

Get answers on your income, the home's address and your budget from a licensed loan officer before you apply.

Talk to a Mortgage Expert
Austin Capital Mortgage loan officer helping a homebuyer
Why choose ACM

Why Get Your USDA Loan With ACM

We check the home, the household income and the paperwork early, so there are fewer surprises later.

01 AddressCouple moving boxes into their new home after closing

Address Checked Before You Offer

We check the home against USDA's eligibility map so you don't fall in love with a home that doesn't qualify.

USDA eligibility mapBefore you offer
02 IncomeCouple reviewing loan documents with a loan officer

Household Income Reviewed Up Front

We count your household income, including childcare deductions, against your county's limit.

115% of area medianChildcare deductions
03 DocumentsCouple enjoying their new home

A Clear Document List From Day One

You know exactly what underwriting needs and why, so your file is complete when it's submitted and last-minute requests stay rare.

Upfront checklistComplete fileFewer surprises
04 SupportLoan officer smiling while answering a borrower's call

A Loan Officer Who Answers

Calls are answered or returned the same business day, and file updates reach you every 48 to 72 hours.

Same-day callbacksUpdates every 48-72 hrs

USDA Loans: Your Questions Answered

Get clear answers on USDA eligibility, income limits, down payments and fees.

What is a USDA loan?

A USDA loan is a mortgage backed by the U.S. Department of Agriculture’s Rural Development program. It offers 0% down for eligible buyers in eligible areas.

Private lenders like ACM make the loan, and USDA guarantees part of it. That is why it is called a USDA guaranteed loan. You don’t need to be a first-time buyer to qualify.

Is my home eligible for a USDA loan?

The home must be your primary residence, such as a single-family home, townhome or approved condo, in a USDA-eligible area. Eligible areas include many small towns and suburbs, and USDA’s map decides by exact address.

Send us the address and we’ll check it before you make an offer.

What are the USDA income limits?

The limit is 115% of the area median income, set by county and household size. Limits rise with the number of people in the household.

Income from all adults in the household counts, and qualified childcare costs for children 12 and under can be deducted.

How much down payment do you need for a USDA loan?

None. USDA guaranteed loans offer 100% financing, so you can buy with 0% down.

You still need cash for closing costs, unless the seller or an assistance program covers them.

What credit score do you need for a USDA loan?

USDA sets no minimum score, but most lenders look for a 640 score and a clean recent history, with no recent late payments, bankruptcy or foreclosure.

Lenders may approve a weaker area of your file when another area is strong.

What debt-to-income ratio do you need?

The benchmarks are 29% for housing costs and 41% for total debt, measured against gross monthly income.

USDA allows up to 32% and 44% when every applicant has a 680+ score and the file has a compensating factor, such as 3 months of reserves.

What are the USDA guarantee fees?

There is a 1% upfront guarantee fee, usually paid at closing and sometimes rolled into the loan, and a 0.35% annual fee split into monthly payments.

USDA can change these each fiscal year, and we’ll confirm the current figures in your quote.

Can I combine a USDA loan with down payment assistance?

Where programs allow it, yes. Some state assistance programs work with USDA loans, including options that help with closing costs.

Availability varies by state, and we’ll show you what applies where you’re buying.

What is the difference between a USDA guaranteed loan and a USDA direct loan?

A guaranteed loan comes from a private lender like ACM, with USDA backing part of it. A direct loan comes from USDA itself, for lower-income households, and you apply with USDA.

ACM works with USDA guaranteed loans.

How do I apply for a USDA loan?

Start with a free rate quote or a call. We check your income and the home’s address, review your credit and documents and issue your pre-approval.

Then you make your offer, and the loan goes through underwriting and USDA’s guarantee review.

Next step

Get Your Free USDA Rate Quote

  • See live rates for your scenario
  • Takes about 2 minutes
  • No obligation
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Our team

Meet Your USDA Loan Officers

Every ACM borrower works with one licensed loan officer from application to closing.

Jett Middleton, Loan Officer at Austin Capital Mortgage

Jett Middleton

Loan Officer

Jett Middleton

NMLS: 2736777

Jett focuses on first-time homebuyers and down payment assistance programs, along with DSCR loans for investors.

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Lance Kotal, Loan Originator at Austin Capital Mortgage

Lance Kotal

Loan Originator

Lance Kotal

NMLS: 308707

Lance has been a loan officer in Austin since 2001. A UT Austin economics graduate who helped his father build houses, he brings hands-on knowledge of homes to the financing conversation.

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Clint Brinkoeter, Loan Officer at Austin Capital Mortgage

Clint Brinkoeter

Loan Officer

Clint Brinkoeter

NMLS: 2592637

Clint has more than a decade of experience in mortgage origination. A Texas State finance graduate, he's known for his market knowledge and close community ties.

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Adrienne Sanchez, Loan Officer at Austin Capital Mortgage

Adrienne Sanchez

Loan Officer

Adrienne Sanchez

NMLS: 1213046

Adrienne entered the mortgage industry in 1994, led operations at a mortgage company and joined ACM in 2009. She brings three decades of lending experience to every file.

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Tom Oltmann, Loan Officer at Austin Capital Mortgage

Tom Oltmann

Loan Officer

Tom Oltmann

NMLS: 308768

Tom has originated loans at ACM since 2008, after more than a decade managing retail stores for AT&T. He works with first-time buyers and investors and keeps clients informed at each step.

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Charlie Cooper, President at Austin Capital Mortgage

Charlie Cooper

President

Charlie Cooper

NMLS: 326203

Charlie leads Austin Capital Mortgage and brings a long-term view of the lending business to every file. A University of Houston finance graduate, he's known for getting to the right answer quickly.

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Get Your Free USDA Rate Quote

Check your income and address, see live rates in 2 minutes, or talk with a loan officer today.

Homebuyers reviewing their FHA loan options
Questions & answers

USDA questions? We’ve got answers.

Clear answers on income limits, eligible areas, down payments and what to expect before closing.

More questions? See our Mortgage FAQs.

Still have a question?

Speak with a local mortgage expert and get answers tailored to your situation.

You need household income within your county’s limit, a primary residence in an eligible area, and credit and income that satisfy the lender. See the requirements above for each detail.

Start with a free rate quote or a call. We check your income against the limit, check the home’s address and review your credit.

It is 115% of the area median income, set by county and household size. We’ll check your household against your county’s limit.

Send us the address and we’ll check it against USDA’s eligibility map. You can also check it on USDA’s website.

USDA sets no minimum. Most lenders look for a 640 score, and we’ll show you where you stand.

Yes. USDA guaranteed loans offer 100% financing. You still need money for closing costs unless the seller or an assistance program covers them.

USDA charges a 1% upfront guarantee fee and a 0.35% annual fee instead of traditional private mortgage insurance. We’ll confirm current figures in your quote.

No. The home must be your primary residence in a USDA-eligible area. Single-family homes, townhomes, approved condos and eligible manufactured homes can qualify.

USDA requires you to move in within 60 days of closing and live in the home as your primary residence.

USDA requires U.S. citizenship, U.S. non-citizen national status or qualified alien status. We’ll confirm your situation.

Rates change daily and depend on your credit score, loan amount and lock date. Get a free rate quote to see the rate your file qualifies for, or check today’s live mortgage rates.

Yes. Start with a free rate quote online, upload your documents securely and work with your loan officer by phone or text. Pre-approval includes a credit check and income verification.

ACM is licensed in 26 states. Eligibility depends on where the home is, and we’ll confirm your state and address.