Does USDA home loan subsidize your mortgage?

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Doing the math I (only) qualify for $102,000 home loan which will buy absolutely nothing in my community. If I use the USDA program will they match those funds or subsidize the loan somehow? I cannot afford to buy a home in my county because I do not qualify for enough money. Does anyone have experience with USDA?

3 comments to Does USDA home loan subsidize your mortgage?

  • Amy  says:

    USDA = United States Department of Agriculture. What specific program are you referring to?

    Some individual cities have programs that help low-income individuals and families buy homes. Check with the cities that your are interested in. Also check out HUD.

  • Patty D  says:

    No they do not.

    On USDA you must qualify on the income of everyone who will be living in the household that is over the age of 18. If you qualify on income then the next step is for the town you are looking at purchasing in must qualify (population = rural). You need to be in touch with a mortgage company or a real estate agent that knows what they are doing. You can also look for more information online at

  • cottonlily84  says:

    I can guess that if you can’t buy a home under $102k then you aren’t in a rural area and that’s the only way you can get a USDA loan. You can consider moving to another lower cost area or waiting until you have a larger downpayment.

    I’m not sure what “math” you’ve already done but you need to talk to a mortgage broker. You have to pay them but this is what they do. They will be the ones who prequalify you and tell you how much you can borrow. The last thing you want to do right now is get a crappy mortgage that won’t suit your needs for the entire time you plan on being in the home.

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