Short answerA USDA guaranteed loan lets eligible buyers in eligible rural areas buy with no down payment. For fiscal 2026, USDA charged a 1% upfront guarantee fee and a 0.35% annual fee. Household income limits apply, the property must be in an eligible area, and the appraisal checks property standards. Ask your lender for current fees and eligibility.
Who qualifies?
Buyers under the household income limit for the county, buying a primary residence in an eligible area. Check any address on USDA's eligibility website, and confirm with your lender.
What does it cost?
An upfront guarantee fee, often financed, and an annual fee paid monthly. USDA sets these each federal fiscal year. For fiscal 2026 they were 1% and 0.35%.
Property requirements
USDA property rules and eligible areas and well and septic rules.
Frequently asked questions
Is Seymour eligible for USDA loans?
Eligibility maps change and are set by USDA. Check the exact address on USDA's eligibility site.
Can I use a USDA loan on acreage?
Often yes, if the property is residential and not income producing. Ask your lender.
Keep reading
Looking at a house and not sure what you are getting into?
Ask for a free Before You Offer review. Send me the listing. I look over the photos, the seller's disclosure, and recent sales, then flag likely condition issues and planning cost ranges before you write an offer.
Request a Before You Offer reviewOr call or text (812) 525-5489, or email john@yourpropertynegotiator.com.
The Before You Offer review is a REALTOR® and contractor review of the listing, not a home inspection. It is for buyers who are not already working with an agent. If you have an agent, please bring these questions to your agent.
Sources
- USDA Rural Development, FY 2026 guarantee fee notice (1.00% upfront, 0.35% annual)
- USDA property and income eligibility site
Written by John Long, REALTOR®, 1 Percent Lists Indiana Real Estate. Working contractor who has priced hundreds of home inspection repair requests. Former labor relations negotiator for a major manufacturer and U.S. Coast Guard veteran.
John Long, REALTOR® · 1 Percent Lists Indiana Real Estate · (812) 525-5489 · yourpropertynegotiator.com
This page is general information, not a substitute for a professional home inspection, and not legal, tax, insurance, or lending advice. Ask a real estate attorney about contracts and disclosure, a CPA about taxes, your lender about loan rules, and a licensed inspector or tradesperson about your house. Nothing here guarantees a sale price, net proceeds, repair cost, payment, timeline, appraisal, inspection result, or loan approval. Cost figures are planning estimates, not bids. I own Wardmark Property Operations LLC, a contracting company. You are always free to use any contractor you choose.