USDA Mortgage

What is a USDA Mortgage?

USDA loans are backed by the U.S. Department of Agriculture and are designed to promote homeownership in rural and suburban areas. The most notable benefit is the zero down payment requirement, making homeownership accessible to buyers who have the income to afford a mortgage but haven't had the chance to save a large down payment. The Bend, Oregon area includes many USDA-eligible properties.

Who It's For

USDA loans are available to low-to-moderate income buyers purchasing homes in USDA-designated rural or suburban areas. The program is especially well-suited for buyers in communities around Bend, as well as other qualifying areas in Oregon, California, and Colorado. Both first-time and repeat buyers can qualify.

Key Benefits

• No down payment required
• Below-market interest rates backed by the government
• Reduced mortgage insurance costs compared to FHA
• Flexible credit guidelines
• Can finance 100% of the appraised value
• Available for move-in ready and new construction homes

Eligibility Requirements

• Property must be in a USDA-eligible rural or suburban area
• Household income must not exceed 115% of the area median income
• Minimum credit score of 640 for automated approval
• Primary residence only — vacation homes and investment properties not eligible
• Debt-to-income ratio generally under 41%
• U.S. citizenship or permanent residency required