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USDA/Rural Housing
Affordable financing for rural homeowners
A USDA Rural Housing Loan from UCCU is one of the most powerful and affordable home loan options available, and it’s designed to help make the dream of homeownership a reality for families in Utah’s rural and suburban communities. Backed by the U.S. Department of Agriculture, this unique loan allows you to purchase a home with zero down payment. That means you can move into your new home without spending years saving for a large upfront investment, freeing up your funds for closing costs, moving expenses, or new furniture.
This program is designed to promote vibrant, growing communities, and you might be surprised to learn which areas qualify. Many of Utah’s growing suburban neighborhoods are eligible, not just distant rural locations. At UCCU, we are experts in USDA loans and can help you quickly determine if your income and desired property location meet the simple qualifications. With a fixed interest rate and flexible credit guidelines, a USDA loan provides a stable, predictable, and affordable path to owning your own home.
Zero Down Payment
With a USDA loan, the barrier of a down payment is completely removed. You can finance 100% of your home’s value, allowing you to keep your savings for other important moving expenses.
Surprising Accessibility
You don’t have to live in a remote area to qualify for a USDA loan. Many of Utah’s growing suburban neighborhoods are eligible, giving you more options to find the perfect home.
Affordable and Stable
Lock in a competitive, fixed interest rate for a stable and predictable monthly payment. USDA loans also feature flexible credit guidelines, making homeownership more accessible and secure
Your Partner in Utah’s Communities
We’re more than just a mortgage provider; we are a part of the communities we serve. As a local, not-for-profit credit union, our mission is to build a stronger financial future for our members. All our decisions are made right here in Utah, by people who understand the local market and are dedicated to your success. We don’t just offer loans—we offer guidance, support, and a commitment to helping you achieve your homeownership goals with a product that truly fits your life.
The Refinancing Advantage
A USDA loan is an incredible tool for purchasing your home, but your financial journey doesn’t end there. Down the road, you have flexible options. The USDA Streamline Refinance program allows current USDA loan holders to refinance quickly and easily, often without a new appraisal, to secure a lower interest rate and reduce their monthly payment. Should your financial situation change, you can also explore refinancing into a conventional loan. Our expert loan officers will stay with you long after closing, ready to help you evaluate your options and ensure your mortgage continues to be a great fit for your family.
Ready to see if a USDA loan is right for you? Connect with a UCCU mortgage expert today and let’s get started.
Is Your Dream Home in an Eligible Area?
Because the definition of “rural” for a USDA loan includes many growing suburban areas, there’s a great chance the home you’re looking for qualifies. The USDA provides an official, easy-to-use map to help you check any property’s eligibility in seconds. Explore the map to see if the homes in your favorite neighborhoods are approved for this incredible program.
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Go to contentFrequently Asked Questions
What is a USDA Home Loan?
A USDA loan is a government-backed mortgage that lets you buy a home with zero down payment. These loans are designed to help people purchase homes in eligible rural and suburban areas. As an approved USDA lender, UCCU can help you through every step of the process.
How do I qualify for a USDA Loan?
To qualify for a USDA loan, you and the property must meet four main requirements:
- Property Location: The home must be in a USDA-eligible area. Many suburban communities qualify!
- Income Limits: Your total household income must be within the limit for your county, which is typically 115% of the area’s median income.
- Credit Score: Most lenders, including UCCU, look for a credit score of 640 or higher.
- Primary Residence: You must plan to live in the home as your primary residence.
How do I apply for a USDA Loan?
Applying for a USDA loan is simple with the help of a UCCU mortgage expert. Here are the basic steps:
- Get Prequalified: Start by talking with us to see what you can afford.
- Find an Eligible Home: Search for a home in a USDA-approved area.
- Complete Your Application: We’ll guide you through the paperwork.
- Get Approved: Your application is reviewed by UCCU and then sent to the USDA for final approval.
- Close on Your Home: Sign the final documents and get the keys to your new home!
Do I still need cash for closing costs with a USDA loan?
Yes. While USDA loans don’t require a down payment, you will still have closing costs. These are fees for services like the appraisal, title insurance, and loan processing. However, a unique benefit of USDA loans is that you can sometimes finance these costs into the loan itself, reducing the amount of cash you need to bring at closing.
Is there mortgage insurance (PMI) on a USDA loan?
No, but there is a similar charge called a Guarantee Fee. This fee is what makes the no-down-payment feature possible. It’s broken into two parts:
- An upfront fee that is usually rolled into your total loan amount.
- An annual fee, paid in monthly installments as part of your mortgage payment.
Even with this fee, a USDA loan is often one of the most affordable ways to buy a home.
How do I check if a home or my income is eligible?
The USDA provides official online maps and calculators to check eligibility. A UCCU mortgage expert can always help you with this, but you can also check for yourself on the USDA’s website. You will need to check two things:
- Property Eligibility: To see if a specific address is in an approved area.
- Income Eligibility: To see if your household income is within the limits for that county.
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