Why agents care
Many buyers in edge-of-town markets have never heard of USDA loans. Showing a zero-down payment with the correct fees can open doors for them, as long as eligibility is left to the lender.
Glossary term
USDA guarantee fee
USDA guaranteed loans charge an upfront guarantee fee, usually financed, and an annual fee paid monthly. USDA Rural Development sets the rates. The program allows eligible buyers in eligible rural and some suburban areas to buy with no down payment, within household income limits.
Example
Example: with a 1% upfront fee and 0.35% annual fee (USDA, effective October 2025), a $300,000 loan adds $3,000 upfront if financed and about $88 a month.
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Questions by topic
USDA guarantee fee: common questions
Do USDA loans require a down payment?
No down payment is required for eligible borrowers and properties.
How do I know if an area is USDA-eligible?
Check USDA's property eligibility map for the address, and confirm with a USDA-experienced lender.
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