USDA Rural Loans

Who it's great for

Low-to-moderate income buyers purchasing a primary residence in an eligible area. There is no strict credit minimum from USDA, though most lenders look for 640+ for streamlined processing.

Down payment

Zero down. You can even finance the guarantee fee into the loan, which means it's possible to close with very little cash out of pocket.

Property eligibility

The property must be located in a USDA-eligible area and used as your primary residence. Many parts of NC — including areas near Wilmington, the Sandhills, the mountains, and much of the eastern coastal plain — qualify. I'll check the exact address before we go far.

Income limits

USDA sets household income limits that vary by county and family size. It's a real ceiling, but higher than many people expect — plenty of dual-income households in NC still qualify.

Guarantee fees

USDA charges an upfront guarantee fee (typically 1% of the loan, financed in) and a small annual fee (around 0.35%) built into the monthly payment. Still usually cheaper than FHA MIP over time.

Key advantages

• 0% down payment
• Competitive fixed rates
• Lower ongoing fee than FHA MIP
• Flexible credit guidelines
• Closing costs can be gifted or rolled in

Worth knowing

USDA is one of the most underused programs in North Carolina. If you're open to areas just outside the major metros, it's worth 10 minutes to check the map — I do that for every client.