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USDA (Purchase)

The U.S. Department of Agriculture’s Rural Housing Program offers low- and moderate-income households the opportunity to own adequate, modest, decent, safe and sanitary dwellings as their primary residence in eligible rural areas. Eligible suburban and rural homebuyers can use it for 100%, no-money down mortgage financing.

How it Works

USDA Rural Home Loans are provided through approved lenders and are designed for borrowers who purchase homes in communities of less than 20,000 people, or certain other USDA approved areas.

Benefits of USDA Rural Home Loans Include

  • Comparatively low mortgage rates
  • Loans up to 100% of property value
  • Reduced monthly mortgage insurance
  • Zero down payment required
  • Closing cost payment can come from any source
  • Easy qualification criteria
  • Not limited to first time homebuyers

What to Know

10 Ways to use a USDA Rural Home Loan:

  1. New or existing residential property to be used as a permanent residence. Closing cost and reasonable/customary expenses associated with the purchase may be included in the transaction
  2. A site with a new or existing dwelling
  3. Refinancing of eligible loans
  4. Special design features or permanently installed equipment to accommodate a household member who has a physical disability
  5. Reasonable and customary connection fees, assessments or the pro rata installment cost for utilities such as water, sewer, electricity and gas for which the buyer is liable
  6. A pro rata share of real estate taxes that is due and payable on the property at the time of loan closing. Funds can be used for the establishment of escrow accounts for real estate taxes and/or hazard and flood insurance premiums
  7. Essential household equipment such as wall-to-wall carpeting, ovens, ranges, refrigerators, washers, dryers, heating and cooling equipment as long as the equipment comes with the dwelling
  8. Purchasing and installing measures to promote energy efficiency (e.g. insulation, double-paned glass and solar panels)
  9. Installing fixed broadband service to the household as long as the equipment comes with the dwelling
  10. Site preparation costs, including grading, foundation plantings, seeding or sod installation, trees, walks, fences and driveways

Eligibility Requirements

Applicants must meet a series of eligibility requirements to be considered for USDA Rural Home Loans. Applicants must:

  • Meet income-eligibility (see Income Limits)
  • Agree to personally occupy the dwelling as their primary residence
  • Be a U.S. Citizen, U.S. non-citizen national or Qualified Alien
  • Have the legal capacity to incur the loan obligation
  • Have not been suspended or debarred from participation in federal programs
  • Demonstrate a willingness to meet credit obligations in a timely manner
  • Purchase a property that meets all program criteria

                                                                                       (According to USDA.gov)


Purchase Price
Down Payment
Principle and interest payment
Total Loan Amount
Monthly Mortgage Insurance
Interest Rate
3.25% – 30 year fixed
Total Payment


(* inclusive of the USDA Guarantee Fee)
(** property taxes and home insurance would be in addition to this payment)

Why Blue Water?

Blue Water’s team has over 150 years of collective mortgage experience we have the knowledge and ability to get your loan closed on time with the best terms and lowest rates for you.

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The loan experience could not have been any better. As a first-time Home Buyer, I had questions and Blue Water Mortgage was willing and able to answer them all.  I would recommend Blue Water to anyone looking for a home mortgage.

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I would recommend the organization with a 10 out of 10. They worked through a ton of grey area to get through a few last minute road blocks. I really felt like they were putting in the extra effort for me. I would absolutely recommend Blue Water to any first time home buyer.

Dan V. Kittery, ME

My experience with Blue Water Mortgage was fantastic. The representatives were very professional and treated me as though I was their most important customer. I was a first time home buyer and Blue Water Mortgage took the stress out of a normally stressful process.

Chris D. Longmeadow, MA

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Please be advised that your actual rate, payment, and cost could be higher. Get an official Loan Estimate before choosing a loan. This estimate is provided for informational purposes ONLY, to assist you in determining an estimate of cash that may be required to close and an estimate of your proposed monthly mortgage payment. Actual charges may be more or less, and your transaction may not involve a fee for every item listed.

Rate and APR based on the following assumptions: Purchase Price of $250,000, loan amount of $200,000, 80% loan to value, 740 credit score, single family property, primary residence, escrowing taxes and insurance, debt ratio within program guidelines.