Matt Boytz
June 24, 2025
Sorry for the let down- there are no cows allowed on USDA mortgages. On the bright side USDA loans are hands down one of the best programs available, right up there with VA, but without the veteran eligibility. If you’re looking to buy with no down payment this is the best option.
Here’s the quick breakdown:
- No down payment required
- Lower rates compared to the other agency programs
- Low monthly mortgage insurance
- Low upfront funding fee
It’s just a really solid loan all around. USDA has strict house hold income limits, and from 2018-2023 there was no way to make enough money to qualify and still be below the income limits. The last couple of years we have seen some massive income limit boosts and this is now a useable product again. Another cool note- If the appraisal comes in higher than the sales price, the USDA allows us to finance your closing costs into the loan amount! This is different from all other mortgage products
Now, a few things to know:
Yes, it’s through the USDA, but no, you can’t use it to buy a farm. No commercial activity allowed. You can’t raise livestock, run a business from the property, or set up a hobby farm. The goal here is to get more people into rural homes, not fund agriculture.
Location matters. USDA is only available outside city limits in bigger metro areas. So you can’t use it in Bend proper, Eugene-Springfield, or Corvallis city limits — but the surrounding areas do qualify.
Income limits used to be a dealbreaker, but not anymore. They’ve gone up big time:
- Deschutes County: $131,450
- Crook & Jefferson Counties: $119,850
That’s for households up to 4 people — bigger households get even more room.
One weird rule: if you’ve got 20% down sitting in the bank, you’re technically not eligible. This is meant to be an affordable housing loan,not a backup plan for people who already have big cash reserves.
Minimum credit scores? You can sometimes get through in the low 600s, but the USDA’s underwriting software really prefers 640+ for higher approval amounts.
GUS Who? The USDA’s proprietary software for underwriting is called GUS. The majority of loan officers do not have GUS access, but I am one of the few that does. That means I can run true pre approvals on this program and get you real answers for your scenario.
We always check this loan option when we run pre-approvals, especially if someone says down payment or monthly payment is a concern. Because honestly, this program checks both boxes: no down and affordable monthly payments.
Want to see if the home you’re looking at qualifies? Just shoot us the address and we’ll take care of it.
As always, I am here to help with any questions you may have.
Apply online at mattboytz.zipforhome.com, call or text me at 541-359-7212, or email me at Matt@BendMortgageBrokers.com.