A USDA loan is a zero-down-payment mortgage backed by the U.S. Department of Agriculture. It is designed to help low-to-moderate income buyers purchase homes in eligible rural and suburban areas. USDA loans offer competitive interest rates and reduced mortgage insurance costs.

Do I have to buy a farm to get a USDA loan?

No! Despite the name, USDA loans are not just for farms. They are available for single-family homes in eligible rural and suburban areas. Many areas just outside major cities qualify, including parts of Spokane County, Yakima County, and other Washington communities.

What are the income limits for USDA loans?

USDA loans have income limits based on your area and household size. Generally, your household income cannot exceed 115% of the area median income. For a family of 4 in most Washington counties, this is approximately $103,500-$120,000 depending on location.

Is there really no down payment required?

Yes! USDA loans offer 100% financing, meaning no down payment is required. This makes homeownership accessible for buyers who have good credit and stable income but have not saved a large down payment. You will still need funds for closing costs.

What is the USDA guarantee fee?

USDA loans have a guarantee fee instead of traditional mortgage insurance. There is a 1% upfront fee (which can be financed into the loan) and an annual fee of 0.35% of the loan balance. This is significantly lower than FHA mortgage insurance.

How do I know if a property is USDA eligible?

You can check property eligibility on the USDA website or ask us to verify. Generally, properties must be in areas with populations under 35,000. Many suburban areas around Spokane, Yakima, Tri-Cities, and Vancouver qualify.

USDA Loans | Q Home Loans

What is USDA?

A USDA loan is a mortgage guaranteed by the United States Department of Agriculture, designed to promote homeownership in eligible rural and suburban areas. USDA loans require no down payment and offer competitive interest rates for low-to-moderate income borrowers. The property must be located in a USDA-eligible area (which includes many suburban communities, not just rural farms), and borrowers must meet income limits based on household size and location.

Why Choose USDA Loans?

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Zero Down Payment

100% financing available for eligible properties and borrowers

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Low Mortgage Insurance

Lower insurance costs compared to FHA loans

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Expanded Eligibility

Many suburban areas qualify, not just rural properties

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Competitive Rates

Often lower interest rates than conventional loans

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Flexible Credit

More lenient credit requirements for qualified borrowers

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Seller Concessions

Sellers can contribute up to 6% toward closing costs

USDA Loans Requirements

Basic Qualifications

Location: Property must be in USDA-eligible rural or suburban area
Income Limits: Household income must not exceed area limits (typically 115% of median)
Credit Score: Contact Q Home Loans for details
Occupancy: Must be primary residence
Citizenship: U.S. citizen, non-citizen national, or qualified alien

Required Documents

Pay stubs (last 30 days)
W-2 forms (last 2 years)
Tax returns (last 2 years)
Bank statements (last 2 months)
Proof of all household income
Property address for eligibility verification

How It Works

USDA loans are guaranteed by the U.S. Department of Agriculture to encourage homeownership in less densely populated areas. You'll pay an upfront guarantee fee of 1% of the loan amount (can be financed) plus an annual fee of 0.35% divided into monthly payments. Income limits vary by location and household size—for example, a family of four in many Washington counties can earn up to $103,500 and still qualify. Use the USDA eligibility map to check if your desired property location qualifies.

Who Should Consider USDA Loans?

First-Time Homebuyers

Limited savings but steady income, looking in suburban or rural areas

Growing Families

Want more space and land outside of expensive urban centers

Remote Workers

Can work from anywhere and prefer quieter, less expensive communities

Moderate-Income Earners

Earn too much for some assistance programs but still need help with down payment