USDA Loans

Murfreesboro USDA Loans

The United States Department of Agriculture (USDA) offers home loans through its USDA Rural Development (RD) Guaranteed Housing Loan Program. These loans are generally easily accessible and offer low interest rates and no down payment requirements. These loans serve as a way to boost economy and quality of life in rural areas.

Much like a VA-backed loan, a USDA-backed loan is obtained through a private lender, but the specifics are regulated by a third-party. In this case, the USDA.

USDA Loan Eligibility

Every county has its own eligibility requirements for USDA-backed loans. Generally speaking, here are a few requirements for Murfreesboro, TN and the rest of Rutherford county:

– Income – applicant must be able to afford mortgage payments for the home but not make more than 15% over the median income in their county – income from all occupants will be considered even if those individuals are not on the loan
– Location of home – the property must fall within The USDA RD Home Loan footprint – the location of the property does not have to be zoned for agricultural use, but it does have to be designated as “rural” by the USDA
– Living arrangements – the purchased home must be owner-occupied – investment properties and rental properties are not eligible

USDA Loan Benefits

As mentioned, USDA-backed loans have no down payment requirement or low interest rates, and they are fairly accessible. In addition to allowing for no down payment, a USDA loan also allows for any closing costs to be paid by the seller at closing or rolled into the financing of the property. These loans are a decent option for anyone with moderate income but may not be able to qualify for a conventional home loan.

"Kelly and her team are swift, caring and help make the buyer feel good. My client and I felt that they were working to give the best advise and up to date information related to the mortgage we needed."
Lucille Lewis

Loan approval and terms are dependent upon borrower’s credit, documented ability to repay, acceptability of  collateral property, and underwriting criteria. USDA loans have location restrictions and income limits. For more information on RD loans, including RD eligibility, please visit

A Legacy Home Loans, LLC (Address: Licensed office 2 Cadillac Drive Brentwood TN 32707 | TN License #:116996 NMLS #:1131833) is not  affiliated with or acting on behalf of or at the direction of the USDA or the Federal Government.