Rural Mortgage Loan Shopping

Rural Mortgages made easy

Tell us who you are and how much money you need
find lender

By clicking Find Lender , I consent and agree to the Terms of Use , Privacy Policy , and eSign Disclosures.

Don't know your credit score?

See it now at


A rural mortgage loan, also referred to as a USDA Mortgage, a Section 502 Loan, or simply a USDA Home Loan, is a loan sponsored by the United Stated Department of Agriculture. These rural home loans offer 100% financing to home buyers with average or below average income at interest rates well-below market averages, making them similar in many ways to FHA loans. According to the USDA, the program is intended to “improve the economy and quality of life in rural America.”

There are three basic categories of USDA Mortgages:

First, the Direct USDA Rural Home Loan. The most unusual thing about these mortgages is the direct USDA financing. The United States Department of Agriculture actually provides the loan rather than simply guaranteeing a loan made by a traditional bank, credit union, or online lender. They target low-income borrowers who are unable to qualify for traditional financing, with special preference for those currently lacking safe or sanitary housing. There’s generally no down payment and interest rates are reasonable.

Second, the Guaranteed USDA Home Loan. Like a VHA Loan, this is actually a USDA guarantee for an approved loan taken out through traditional or online USDA lenders. This loan targets moderate-income borrowers who may have poor credit but for whom there is a reasonable expectation of repayment. Because of the government-backing, lenders can offer better interest rates and approve borrowers they might not otherwise.

Third, USDA Home Improvement Loans. These target low-income borrowers whose homes require serious repair or improvement. One notable feature is that in certain circumstances, part of the money distributed may be categorized as a “grant,” meaning it does not have to be repaid. The rest of the money can be financed at rates as low as 1% and repaid over periods as long as twenty years, making these very affordable for many people who would not otherwise qualify.

Qualifications: How Rural is “Rural”?

Many otherwise knowledgeable borrowers are unfamiliar with rural mortgage loans. Even those aware of it tend to assume that its primary beneficiaries are farmers, small ranchers, or folks who must live in the middle of nowhere in order to qualify.

As it turns out, the USDA’s definition of “rural” is rather generous. Almost anywhere not clogged with skyscrapers and taxis qualifies, although you can easily verify any specific locale on the official map of USDA eligible areas on the U.S. Department of Agriculture’s website. Nor do you need to raise crops, care for livestock, or even own a decent pair of overalls in order to qualify. Instead, USDA loan lenders are looking for:

U.S. citizenship or permanent residency

A stable income sufficient to assure repayment. This is typically understood to mean that your monthly payment should not exceed 29% of your monthly income.

A history of reliable mortgage payments (if a previous homeowner)

No serious credit delinquencies (recent bankruptcy, currently sought after by debt collectors, etc.)

Household income of equal to or less than 115% of the area’s median income

A credit score of 640 or better is strongly preferred, but a lower score is not an automatic disqualification.

Borrower must treat the home as their primary residence, meaning they actually live there the majority of the time. It cannot be a vacation home or intended for “flipping.”

In some situations, the USDA may give preferential treatment to borrowers currently unable to obtain “decent, safe, and sanitary housing” or unable to get approved for a traditional mortgage. Borrowers classified as “low-income” for their area are also given greater consideration.

Things to Consider

Every situation is different. Unlike many traditional lenders, the U.S. Department of Agriculture and USDA-approved lenders take a “holistic” look at your situation and your credit history. More than any other type of home loan, a USDA mortgage is intended to provide opportunity – to buy, to build, to renovate, repair, or improve.

With opportunity comes an element of risk and a substantial responsibility. Home ownership is rarely problem-free and there are no guarantees. Borrowers taking advantage of a USDA mortgage, however, have an excellent opportunity to improve their circumstances, build their credit history, and contribute to their community. Whatever your background and whatever obstacles you’ve overcome, the parts over which you have the most control are what happens now and how you manage your finances and choices going forward.

Like your home, your family, or your job, it doesn’t have to be perfect to be positive. A USDA mortgage may require a bit more paperwork and prove more difficult to obtain. If you’re approved, congratulations – you’re already ahead of the curve as you move forward! Now the question is, what are you going to do next to keep that momentum going?

Loanry® is here to help you get your Rural Mortgages Loan


Why Loanry?

Any form of home financing is a major commitment for a long period of time, and for many of us, our homes are the biggest investment we’ll ever make. They can be our greatest source of equity and wealth or our most intimidating expense and responsibility. Sometimes they’re both.

At Loanry, we can’t make these sorts of decisions quick or easy, but they’re not the sorts of decisions which should be either of those things. What we can do is offer some insight and preparation as you begin your journey and some tools to make it less overwhelming. Whether you’re looking primarily at a Rural Home Loan or something more traditional, the entire family is available 24/7 with information about different loans and mortgages, online tools to compare your options, or convenient forms to connect you to a variety of lenders. Everything we do is available to you wherever you happen to be and whenever you choose.

Compare loan options on your tablet over breakfast or read up common terminology associated with your mortgage on your cell phone while the kids are at karate practice. Read up on tax preparation tips while your spouse watches football or let them compare investment options while you’re caught up in the latest televised baking competition. This is the 21st century, and whatever its challenges, there’s no reason to make personal or small business finance more complicated than they need to be. Life is hard enough. Let’s make money talk a bit easier.


Buying a home is a huge commitment, no matter what method you use or where it’s located. Even refinancing or doing home renovations are major undertakings. They all come with risks, but few things are as rewarding as owning or improving upon your own home – especially on the day you make that final payment and it’s 100% yours.

You want to make the best decisions you can when you’re choosing a home, whether it’s new or previously enjoyed, huge or tiny, urban or rural. None are entirely as perfect as we might have imagined, but most have at least a few things we find appealing, making the choice both easier and more difficult after every open house. Somewhere along the way, however, is one that makes more sense than the rest. The trick is knowing when we’ve found it, despite our enthusiasm for X, our concerns about Y, or the challenges of Z.

Choosing the right financing is the same way. Some things you know you simply must have – a particular monthly payment, for example, or the ability to roll insurance and other charges into the loan. Other details you may be willing to negotiate, as long as the lender works with you a bit as well. Do your research and weigh your decision, but once you’ve done all you can do, don’t spend too much time or energy second-guessing yourself. It’s time to move forward and make this the right call. It’s about what you do going forward that counts.

Your options when buying a home with a USDA Rural Mortgage or any other type of loan are going to be shaped by your credit rating. Your official credit score and detailed credit history impact what interest rates and other terms are available to you, or whether you qualify for a USDA-backed mortgage at all. Once you’ve got that loan, however, every payment you make (or don’t) shapes your credit future. It takes time to raise your credit score and build a positive credit history, but it doesn’t always take as long as you think. And it starts right now.

A stronger credit history and better credit score means more options and lower rates in the future. That mean more disposable income and more opportunity. Money may not buy happiness, but access to financing on favorable terms gives us greater access to opportunities, and experiences, and things we can enjoy with those we love – and those things sometimes have a great deal to do with whether or not we’re happy. Whatever your current situation, it can quickly get worse or you can decide to keep making it better. If you choose the latter, we can help.


Connecting borrowers similar to yourself in situations much like yours to reliable online lenders is an important part of what we do at Loanry. We’re proud of our track record throughout the family. We’re good at it, and we like hearing from people who’ve been successful as a result. That’s not the whole picture, however.

Our vision is to provide users with far more than connections to lenders or information about interest rates. We’re building a “content mall” of related sites covering just about every aspect of personal or small business finance. You can check your credit scores on, learn about different sorts of savings accounts or investment options on, then calculate what it would cost to refinance your car or home on using different interest rates or lengths of the loan. Learn more about how to prepare for tax season, put together a practical household budget, or apply for a small business loan– whatever you need to know, it’s probably in one of our informational blog posts or on our YouTube channel.

We’re committed to breaking down essential ideas into plain simple English. The focus of each site is different, but the guiding vision is the same throughout – we want to help you take better control of your financial world by offering a central location for information, comparisons, and connections.


Did You Hear?

“As much as I converse with sages and heroes, they have very little of my love and admiration. I long for rural and domestic scene, for the warbling of birds and the prattling of my children.”

John Adams (Founding Father and U.S. President 1797 – 1801)

Educate Yourself

Homes, Homes Within Range...

Rural living can mean anything from an isolated plot only accessible by miles of muddy roads or finding yourself more than two miles from a gas station or grocery store. While cities have their advantages, there’s simply no substitute for a little more elbow room and a little less honking and yelling.

Qualifying for a rural mortgage may require a little extra paperwork and meeting a few more expectations, but if approved, the benefits are substantial. We’ll talk you through the terminology you’re likely to encounter and what to expect from USDA lenders. Then, we’ll help you break down the most common requirements, the different forms of USDA-backed loans, and the benefits and potential pitfalls of each.

Explained in 3 easy steps

How all of
this works?

It all starts with a simple loan request that takes a few minutes to complete.

We provide that information, at your request, to participating members who might be able to able to assist you with your financial needs. Many lenders transfer funds to your checking account as soon as the next business day.


Step 1

Start Loan Shopping

Tell us things like who you are and how much money you need.It only takes minutes.

Learn more

Step 2

Find Lender

The Loanry® Store may help you find a lender interested in your loan request.

Learn more

Step 3

Check out

Funds are deposited directly to your bank account as soon as the next business day.

Learn more

Pros & Cons of a Rural Mortgage Loan

You know you want to buy that home, but you're not sure of the best way to finance it. Is a rural mortgage loan right for you?

Pros: Most Favorable Terms

If you live in a rural area (as loosely defined by the USDA) and have an average or below average income, you’re unlikely to find better terms on a home loan for rural area residents than those offered through USDA financing.

Pros: Untapped Resources

The USDA rural home loan is one of the least-known and least-understood mortgage options. Many people don’t realize it exists, and those who do too often assume they don’t qualify without researching further.

Pros: Flexible Uses

Like an FHA loan, USDA loans can often be used for renovation or repair, or even to make your current home more energy efficient. They can finance new building or the purchase of a promising home in any qualifying area.

Cons: Strict Requirements

Most USDA lenders will expect a decent credit score, proof of income over the past few years, and assurances you’ll be living in and taking care of the property. The program itself targets a specific income range, and of course the home must be in a “rural” area, however generously defined.

Cons: Private Mortgage Insurance

You’re not required to make a down payment on a rural mortgage loan, but borrowers who do not pay at least 20% down are required to take out private mortgage insurance (PMI), which protects the lender in case of non-payment. While this can sometimes be rolled into the loan, it increases the overall cost paid over time.

Cons: Long-Term Debt

Debt on the best possible terms is still debt, and purchasing any home is a major financial commitment. While a USDA mortgage is designed to serve low-income borrowers, make sure you have a reliable plan to making monthly payments consistently throughout the life of the loan.

See FAQs

Find answers to some of the most commonly asked questions here

We are a marketing lead generator and advertising service designed to provide you with quick and convenient access to third-party lenders.


We are a marketing lead generator and advertising service designed to provide you with quick and convenient access to third-party lenders.


We are a marketing lead generator and advertising service designed to provide you with quick and convenient access to third-party lenders.


Featured In:

MSN Logo Forbes Logo Readers Logo Bankrate Logo MarketWatch Logo
  • The selection of a third-party purchaser to acquire your information may be determined by a comparison of your registration information with available loan products. Lenders consider a number of factors when assessing your request.

  • We are not a lender, loan broker or agent for any lender or loan broker. We are a marketing lead generator and FREE advertising service designed to provide you with quick and convenient access to third-party lenders.

  • Your lender is legally required to provide you with loan documents, and disclose the terms of your loan, including rates and charges. Each lender has its own terms and policies. Be certain to evaluate all applicable terms and conditions of loan offers before making a decision.

  • The position of each potential purchaser may also be determined by the price the purchaser is willing to pay for the information (e.g., the higher the price, the better the purchaser’s position). There is no guarantee that you will be accepted by a lender, and we do not endorse any lender.

  • Third-party lenders may perform credit checks with credit reporting bureaus or obtain consumer reports, typically through alternative providers to determine credit worthiness, standing and/or credit capacity .

  • To prevent unauthorized access, maintain data accuracy and ensure the correct use of information we gather online, we store your personally identifiable information in a database on secure systems. We have put in place physical, electronic and managerial security procedures to protect against the loss, misuse and alteration of the information under our control.

  • Funding times may vary. Not all consumers will meet the lending criteria to qualify for a loan.

  • In the State of California, Loanry, LLC is licensed by the Department of Business Oversight pursuant to the California Finance Lenders Law. Loanry’s California license #60DBO 66864 can be viewed by clicking the image on the left.

US Address

23 Corporate Plaza,
Newport Beach, CA 92660

Call Us