The USDA itself does not set a minimum credit score for its guaranteed loan program. However, the lender you work with will have its own credit score requirements. Most USDA-approved lenders look for a FICO credit score of at least 640 to issue an automated approval through GUS, the USDA's Guaranteed Underwriting System.

Borrowers with credit scores below 640 are not automatically disqualified. If your credit score falls between 580 and 639, you may still be eligible for a USDA loan through manual underwriting. This process involves a more detailed review of your credit history, employment, savings, and other compensating factors that demonstrate your ability to repay the loan.

Your credit history matters beyond just the score. The USDA credit requirements include a consistent pattern of on-time payments. Late payments on existing debts, collections, or judgments within the past 12 months can make qualification more difficult. Before applying for a USDA home loan, check your credit report for errors and work on paying down outstanding debts. Meeting the USDA home loan requirements for credit takes preparation, but it is achievable for most borrowers.

Unlike most mortgage programs, USDA loans have household income limits. Your total household income cannot exceed 115% of the area median income (AMI) for the county where you plan to buy. This means the USDA looks at the earnings of everyone living in the home, not just the person on the mortgage.

Income limits vary by county and household size. For a household of 1 to 4 people, the standard income limit in most areas is $112,450 for 2026. Households with 5 to 8 members have a higher limit of $148,450. High-cost counties may have significantly higher thresholds.

The USDA loan program is designed to promote homeownership in rural and suburban areas through the Single Family Housing Guaranteed Loan Program. To be eligible, the property you want to buy must be located in a qualifying eligible rural area as defined by the USDA eligibility map. Despite the "rural area" label, many suburban communities, small cities, and towns outside major metropolitan areas qualify for USDA financing.

Eligible areas generally include locations with populations of 35,000 or less that are not part of a metropolitan statistical area. The property must be located in an eligible rural area as defined by USDA Rural Development Guaranteed Housing Loan guidelines. The Rural Development Guaranteed Housing Loan program periodically updates its eligibility boundaries, so areas that qualify today may change. Always check your USDA property eligibility using the online tool before making an offer. Many communities that are eligible for USDA loans are located in a USDA-approved rural area just outside city limits.

While USDA loans do not charge private mortgage insurance (PMI), they do require a guarantee fee that serves a similar purpose. This fee funds the USDA loan guarantee program and allows the USDA to continue offering zero down payment mortgages.

The USDA guarantee fee has two components. The upfront guarantee fee is 1% of your total loan amount and can be rolled into the mortgage so you do not have to pay it out of pocket at closing. The annual guarantee fee is 0.35% of the remaining loan balance, divided into 12 monthly payments added to your mortgage payment.

Your debt-to-income ratio (DTI) measures how much of your monthly gross income goes toward paying debts. USDA loans have two DTI thresholds that borrowers should be aware of when they apply for a USDA loan.

The front-end ratio (housing expenses only) should not exceed 29% of your gross monthly income. This includes your mortgage payment, property taxes, homeowner's insurance, and the USDA annual guarantee fee.

The back-end ratio (all monthly debt payments) should not exceed 41% of your gross monthly income. This includes your housing expenses plus car payments, student loans, credit card minimums, and any other recurring debts.

Borrowers with a credit score of 680 or higher may qualify with a slightly higher DTI ratio of up to 43%. Your USDA-approved lender will verify your income, assets, and debts during the application process to calculate these ratios.

Applying for a USDA loan follows a similar process to other mortgage applications, with a few extra steps to verify USDA loan eligibility requirements. To learn more about USDA loan application steps, here is how to get started with the process.

USDA loan guidelines require a stable employment history of at least two years. Your lender will verify your employment with your current and previous employers to confirm consistent income. Self-employed borrowers can also qualify but must provide two years of tax returns showing stable or increasing income.

You do not need to work in agriculture or farming to apply for a USDA loan. The program is available to anyone who meets the eligibility criteria regardless of their profession. Teachers, healthcare workers, retail employees, remote workers, and professionals in any field can apply for a USDA home loan if they meet the income and location requirements.

If you recently changed jobs or have gaps in your employment history, you may still qualify. Your loan officer will evaluate the circumstances and determine whether your current income is stable enough to support the mortgage payments. A strong credit score and savings history can help compensate for employment gaps.