USDA Home Loans


USDA loans are mortgages offered by the U.S. Department of Agriculture, intended to encourage homeownership in less densely populated areas of the country. The USDA acts as the guarantor for the mortgage, and a lender actually issues you the loan.

Features of USDA Loans

  • 100% financing available
  • Property has to be located in an eligible rural or suburban area
  • Household income must meet certain guidelines

Property Eligibility 

The property you’re purchasing must fall within approved rural areas to qualify for a USDA loan. But despite the program’s reputation for serving primarily rural areas, 97% of the US land mass is eligible for USDA financing. So you can’t buy in an urban area with a USDA loan, but chances are there are properties near you that qualify. To see whether the home you’d like to buy is eligible, search here.

Income Guidelines 

The USDA requires that borrowers make 115% or less of their region’s median income to qualify for a USDA mortgage. For example, if your area’s median income is $50,000 a year, you could make as much as $57,500 and qualify. Increased income limits are available to families of five or more. Learn more about income eligibility here.

Mortgage Insurance for USDA Loans

Mortgage insurance for USDA loans is less expensive than it is for competing loan products, like conventional or FHA  mortgages. The USDA requires an upfront fee of 1.0% of the loan amount, and a mortgage insurance fee equal to 0.35% of the loan balance per year. For example, if the home you are purchasing costs $200,000, you’ll owe $2,000 upfront and $58 per month. However, you don’t have to pay the upfront fee in cash, it can be rolled into your mortgage.

Loan Calculator

Notes: 1. Select the Loan Type
2. Input the purchase variables
3. Click on Calculate
Contact us if you have any questions.

Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues

Please visit our Disclosures page for more details for all loan types.

Aligned Mortgage - Waipio
94-539 Puahi Street
Waipio, HI 96797
NMLS #1696573
Licensed in Hawaii -Texas -Oregon -California
Phone 808-677-5626

Aligned Mortgage - Hilo
99 Aupuni St STE 108
Hilo, Hawaii 96720
NMLS #1727609
Licensed in Hawaii
Phone (808) 495-0317

Aligned Mortgage - San Antonio
1027 Austin Hwy STE 101
San Antonio, TX 78209
NMLS #1695733
Licensed in Texas - California
Phone 210-874-1630

 © 2018 American Pacific Mortgage Corporation. All information contained herein is for informational purposes only and, while every effort has been made to ensure accuracy, no guarantee is expressed or implied. Any programs shown do not demonstrate all options or pricing structures. Rates, terms, programs and underwriting policies subject to change without notice. This is not an offer to extend credit or a commitment to lend. All loans subject to underwriting approval. Some products may not be available in all states and restrictions apply. Equal Housing Opportunity.
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Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act.

Consumers wishing to file a complaint against a company or a residential mortgage loan originator should complete and send a complaint form to the Texas Department of savings and mortgage lending, 2601 north Lamar, Suite 201, Austin, Texas 78705. Complaint forms and instructions may be obtained from the department’s website at A toll-free consumer hotline is available at 1-877-276-5550. The department maintains a recovery fund to make payments of certain actual out of pocket damages sustained by borrowers caused by acts of licensed residential mortgage loan originators. A written application for reimbursement from the recovery fund must be filed with and investigated by the department prior to the payment of a claim. For more information about the recovery fund, please consult the department’s website at