VA Loans & USDA Loans
Specialized mortgage programs designed to help specific groups of buyers purchase a home.
Not all mortgages are built the same. Some loan programs are specifically designed to support certain buyers, offering unique benefits like lower upfront costs or flexible approval guidelines. Two of the most notable examples are VA loans and USDA loans.
What Makes VA and USDA Loans Different?
VA and USDA loans are government-backed mortgage programs created to expand access to homeownership for specific populations. While they share some similarities, each serves a distinct purpose.
- VA loans support eligible veterans, active-duty service members, and certain military families.
- USDA loans encourage homeownership in designated rural and semi-rural areas for qualifying income levels.
VA Loans Explained
VA loans are backed by the U.S. Department of Veterans Affairs and are designed to help those who have served in the military become homeowners with fewer financial barriers.
Key benefits of VA loans
- No required down payment for most borrowers
- No private mortgage insurance (PMI)
- Competitive interest rates
- Flexible credit and underwriting guidelines
Who qualifies for a VA loan?
Eligibility is based on military service history rather than income limits. Borrowers typically need a Certificate of Eligibility (COE) and must intend to occupy the home as a primary residence.
You’re eligible through military service and want to minimize upfront costs while avoiding monthly mortgage insurance.
USDA Loans Explained
USDA loans are backed by the U.S. Department of Agriculture and are intended to promote homeownership in eligible rural and suburban communities.
Key benefits of USDA loans
- No down payment required
- Lower mortgage insurance costs than FHA loans
- Competitive interest rates
- Accessible to moderate-income households
USDA eligibility requirements
Eligibility depends on both property location and household income. The home must be in an approved area, and borrower income must fall within local limits. USDA loans are intended for primary residences only.
You’re buying in an eligible area, meet income guidelines, and want a low-cost path to homeownership with minimal cash upfront.
VA Loans vs. USDA Loans
- Military service eligibility
- No down payment required
- No monthly PMI
- No income limits
- Location and income-based eligibility
- No down payment required
- Lower mortgage insurance than FHA
- Rural and semi-rural focus
How to Decide Which Program Fits You
The choice between VA and USDA loans depends primarily on eligibility, but long-term goals also matter.
- Confirm whether you qualify for military or location-based programs
- Compare upfront costs and ongoing mortgage insurance
- Evaluate how long you plan to stay in the home
- Factor in property location and resale considerations
Comparing loan programs side by side using the same home price and rate assumptions can reveal which option fits your budget and long-term plans best.