Down Payment · 7 min read
A Practical Guide to Down Payment Assistance
How grants, second liens, and state programs actually work, and when they're worth using.
Corie AdamsClient Login (opens in a new tab)Get Pre-Approved (opens in a new tab)
Lending Team|Personalized Mortgage Experience
Results update as you type. Use the arrow keys to review suggestions and Enter to open one.
Buying a Home · USDA Home Loans
USDA loans, often the best-kept secret.
A USDA home loan is backed by the U.S. Department of Agriculture's Rural Development program. It offers 100 percent financing for eligible buyers purchasing in designated rural and suburban areas.
Corie Adams · Producing Branch Manager · NMLS #1875205
Who this is for
Whether this fits the plan you have.
USDA financing tends to fit buyers looking outside city centers who meet the program's income and location requirements.
Buyers with limited savings
You have stable income but have not saved a large down payment. USDA loans can finance up to 100 percent of the purchase price for eligible buyers.
Buyers looking outside city limits
You are considering homes in eligible rural or suburban areas near Lancaster County. Many areas that feel suburban still qualify.
Moderate-income households
Your household income falls within the USDA's limits for your county and household size.
First-time and repeat buyers
USDA financing is not limited to first-time buyers. If you meet the requirements, you can use it again.
Buyers who want lower mortgage insurance costs
USDA's guarantee fee is generally lower than FHA's comparable mortgage insurance, which can help your monthly payment.
Buyers open to flexible property types
Eligible single-family homes, some condos, and certain new construction can qualify within designated areas.
How it works
The path, step by step.
USDA financing follows a similar path to other mortgages, with a property and income eligibility check added early.
We check property eligibility
We confirm the address falls within the USDA's designated eligible area before you write an offer, since eligibility is based on the USDA map, not how rural the area feels.
We check household income limits
USDA loans are designed for moderate-income households. We compare your household income against the current limit for your county and household size.
You receive a written pre-approval
A real pre-approval reviews your income, assets, and credit so you know the price range you can work with before you tour homes.
We review the guarantee fee
We calculate the upfront guarantee fee and ongoing annual fee so you understand the complete monthly payment picture.
You close and move in
You receive your final figures ahead of the closing table, and we walk through them together so nothing is a surprise in the room.
Start with a real number, not an estimate.
A pre-approval reviews your income, assets, and credit so you know the price range you can actually work with before you tour a home or sign a builder contract.
Requirements at a glance
What underwriting looks at.
These are typical USDA program expectations rather than fixed rules. Approval still depends on income, credit, and the property.
- Down payment
- None required for many eligible buyers, allowing up to 100 percent financing
- Property location
- Must fall within a USDA-designated eligible rural or suburban area
- Household income
- Must fall within USDA limits based on household size and county
- Credit guidelines
- Generally flexible, with a full review of payment history rather than a single score
- Mortgage insurance
- An upfront guarantee fee and an ongoing annual fee, both generally lower than FHA
- Occupancy
- The home must be your primary residence
- Property type
- Eligible single-family homes and some condos or new construction within designated areas
Guidelines vary by lender and can change over time. Nothing here is a commitment to lend or an approval of credit.
Costs and assumptions
What it costs, and what we assumed.
USDA costs follow the same categories as any mortgage, with a guarantee fee in place of some other loan types' mortgage insurance.
Down payment
Often none required, which can make the path to homeownership shorter for eligible buyers.
Upfront guarantee fee
A one-time fee that is typically financed into the loan rather than paid out of pocket at closing.
Annual fee
An ongoing fee added to your monthly payment, generally lower than comparable FHA mortgage insurance.
Closing costs
Title, appraisal, and lender fees similar to other loan types.
Common misconceptions
What people get told, and what is actually true.
Often heard
USDA loans are only for farms.
In practice
USDA loans are for eligible residential properties in designated rural and suburban areas, not working farms. Many areas near Lancaster qualify.
Often heard
You need a large down payment.
In practice
Eligible buyers can often finance 100 percent of the purchase price, meaning no down payment is required.
Often heard
Any income level qualifies.
In practice
USDA loans are designed for moderate-income households, and limits depend on household size and county. We check eligibility early.
Often heard
Only first-time buyers can use USDA financing.
In practice
Repeat buyers can use USDA financing as long as they meet the income and property eligibility requirements.
Questions
Asked at the kitchen table.
From the Learning Center
Related guides.
Reads that answer what buyers ask before they ever tour a home.
Getting Ready · 6 min read
Pre-Approval vs. Pre-Qualification
The difference matters more than the words suggest, especially when you're competing for a home.
First-Time Buyer · 9 min read
The First-Time Homebuyer's Timeline
A month-by-month look at what buying your first home actually feels like, from the first conversation through closing day.
Client Stories