USDA Rural Loans

Zero down payment financing for eligible rural and suburban Utah communities

What Is a USDA Loan?

USDA Rural Development loans are backed by the U.S. Department of Agriculture to support homeownership in rural and suburban communities. They offer zero down payment and competitive rates — and more Utah areas qualify than most buyers realise.

Zero Down Payment

100% financing with no down payment required for eligible properties and borrowers

Rural Utah Coverage

Many suburban Utah areas qualify — Cache Valley, Sanpete County, rural Utah County, and more

Lower Mortgage Insurance

USDA guarantee fee (1%) and annual fee (0.35%) are lower than FHA MIP over the life of the loan

Competitive Fixed Rates

Government-backed guarantee enables competitive 30-year fixed rates for qualified borrowers

USDA Loan Requirements

Income Limits

• Household income must be ≤115% of area median income (AMI)
• Salt Lake County: ~$110,000–130,000 for a family of 4 (verify at eligibility.sc.egov.usda.gov)
• All household income counts — not just borrowers on the loan

Eligible Utah Areas

• Cache Valley (Logan, Hyrum, Richmond)
• Sanpete County (Manti, Ephraim, Mt. Pleasant)
• Rural Utah County pockets (Elk Ridge, Woodland Hills)
• Many Box Elder, Millard, Sevier county communities

Fees

• Upfront guarantee fee: 1.0% of loan (financed)
• Annual fee: 0.35% of remaining balance
• No monthly PMI — annual fee is significantly lower than FHA MIP

Property & Credit

• Must be primary residence; no investment properties
• Minimum 640 credit score for GUS automated approval
• Manual underwrite possible below 640 with strong file
• Property must be in USDA-eligible area (verify before offer)

USDA vs. FHA: Which Zero-Down Option Fits?

USDA Advantages

• Lower annual fee (0.35% vs FHA's 0.55%+)
• No upfront MIP structure — just the 1% guarantee fee
• Annual fee can drop off (unlike FHA MIP for life)
• Often lower total cost over 30 years vs FHA

FHA Advantages

• No geographic restriction — works anywhere in Utah
• Lower minimum credit score (580 vs 640 for USDA)
• No household income cap
• Higher loan limits for higher-priced markets

Check Your Eligibility

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