USDA loans
A USDA loan is backed by the US Department of Agriculture and offers no-down-payment financing on homes in eligible rural and semi-rural areas. Much of the outer Triangle qualifies, which surprises most buyers who assume "rural" means farmland.
Best for: Buyers with modest incomes purchasing outside the denser parts of the Triangle.
Our instant calculator prices conventional and FHA. USDA pricing depends on details the tool does not collect, so we quote it directly rather than risk giving you a number that is wrong for your situation.
What makes this loan different
No down payment
USDA guaranteed loans finance 100% of the appraised value for eligible borrowers and properties.
The map is wider than you think
Eligibility is by USDA map, not by how the area feels. Parts of Johnston, Franklin, Harnett, Chatham and Granville counties within commuting distance of the Triangle commonly qualify.
Lower insurance cost
The guarantee fee structure is generally cheaper than FHA mortgage insurance on a comparable loan.
What you'll need
- The property must sit inside a USDA-eligible area — check the address on the USDA map before anything else.
- Household income must fall under the limit for the county and household size.
- The home must be your primary residence.
- An upfront guarantee fee and an annual fee apply.
- Standard credit and income documentation.
Honest trade-offs
- Geographic eligibility is absolute — if the address is outside the map, no amount of qualifying fixes it.
- Income limits mean higher earners are excluded, unlike FHA or conventional.
- Processing can take slightly longer because of the agency guarantee step.
Common questions
Does anywhere near Raleigh qualify for a USDA loan?
Yes, more than people expect. USDA eligibility is drawn by map rather than by character, and areas in Johnston, Franklin, Harnett, Chatham and Granville counties within a reasonable commute of the Triangle frequently qualify. Check the exact address on the USDA map, since eligibility can change street by street.
Is there an income limit for USDA loans?
Yes. Household income must fall below a limit that varies by county and household size, and it counts income from adult household members rather than only the borrowers. Check the current limit for your county on the USDA site before you plan around this program.
Do I have to be a farmer?
No. The program is administered by the Department of Agriculture but has nothing to do with farming. It exists to support home ownership outside dense urban areas.
Check the rules yourself
We would rather you verified this than took our word for it. These are the primary sources for the program.
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