USDA Loans in Arizona & Texas
A $0 down payment option for eligible buyers purchasing in USDA-designated rural and suburban areas.
What Is a USDA Loan?
A USDA loan is a mortgage guaranteed by the U.S. Department of Agriculture's Rural Development program, designed to help eligible buyers purchase homes in designated rural and suburban areas with no down payment. Here at Efinity Mortgage, we help clients check property eligibility and household income limits upfront, so you know early on whether a USDA loan is a realistic option for your purchase.
Who USDA Loans Are Often a Good Fit For
- Buyers purchasing in an eligible rural or suburban area (about 97% of U.S. land qualifies)
- Buyers who want to purchase with no down payment
- Buyers whose household income falls within local USDA limits
- Buyers looking for lower ongoing mortgage insurance costs than FHA
Property & Income Eligibility
USDA loans have two main eligibility requirements beyond the borrower's finances: the property must be located in a USDA-designated eligible area, and total household income must generally fall at or below 115% of the area median income for that county, based on all household income, not just the borrower's.
Since these limits vary by location and household size, we check both early in the process.
Down Payment & Guarantee Fee
USDA loans require no down payment. Instead of PMI, they charge a one-time upfront guarantee fee of 1% of the loan amount, which can be rolled into the loan, plus an annual fee of 0.35% of the remaining balance, paid monthly.
Here at Efinity Mortgage, we walk through these numbers with you so you know exactly what to expect.
Is a USDA Loan Right for You?
Every borrower's situation is different. Reviewing your property location, household income, and goals together is the best way to know whether a USDA loan, or another program, fits what you're trying to do.
Common Questions
Do I need a down payment for a USDA loan?
No. Eligible borrowers can purchase with $0 down.
What credit score do I need for a USDA loan?
USDA doesn't set an official minimum score. Here at Efinity Mortgage, we typically look for a score around 640 as part of reviewing your full application, following USDA guidelines.
Does my income disqualify me from a USDA loan?
It might, since USDA loans have income limits based on your county and household size, generally around 115% of the area median income. We can check your specific numbers together.
Can I use a USDA loan for a home in any location?
No. The property must be in a USDA-designated eligible area, which covers many rural and suburban areas, though not larger cities. We can help you check whether a specific property qualifies.