Buy a home with $0 down — no, really.
USDA loans let eligible buyers finance 100% of a home in qualifying Minnesota communities — with a competitive 30-year fixed rate and monthly costs that often beat FHA. Ashland will tell you in one call whether you and the home qualify.
Ashland Alitz · Branch Sales Manager & Loan Officer · NMLS #1584948 · Fairway Home Mortgage
A USDA loan is a government-backed mortgage that lets eligible low- to moderate-income buyers purchase a home in a USDA-eligible area with no down payment. It uses a 1% upfront guarantee fee and a 0.35% annual fee instead of mortgage insurance, and it's available through approved lenders like Fairway Home Mortgage.
The best-kept secret in home financing
Most buyers have heard of FHA and VA. Far fewer know the USDA Guaranteed Loan — even though for eligible buyers it's often the most affordable path to homeownership there is.
No down payment
Finance 100% of the purchase price. Keep your savings for moving, furniture, and an emergency cushion instead of emptying it at closing.
Competitive fixed rates
The federal guarantee reduces lender risk, which supports competitive pricing on a stable 30-year fixed rate — no adjustable surprises.
Lower monthly fees than FHA
USDA's 0.35% annual fee runs well below FHA's typical annual mortgage insurance — often a difference of real money every single month.
Flexible credit standards
The program is known for common-sense underwriting. A perfect score isn't required — a conversation about your file goes a long way.
More eligible areas than you think
"Rural" includes many small towns and outer-metro communities across Minnesota — not just farmland. The address check takes a minute.
Closing costs can be covered
Seller contributions and gift funds are allowed, and the upfront guarantee fee can be financed — many buyers bring very little to closing.
Do you qualify? It comes down to the home and your household.
1 · The property location
The home must sit in a USDA-eligible area — generally communities with populations under about 35,000. Much of greater Minnesota qualifies, along with many communities on the outer edge of the Twin Cities metro. Eligibility is address-by-address on the official USDA property eligibility map, and it must be your primary residence.
2 · Your household income
The program serves low- to moderate-income households, with limits that vary by county and household size and update regularly. Rather than guessing from a chart, have Ashland run your exact county and household in a quick call — or check the USDA income eligibility tool yourself.
No PMI — a guarantee fee instead, and it's the cheaper kind
Instead of private mortgage insurance, USDA loans carry a two-part guarantee fee that funds the program. For FY2026, the fees are:
| Fee | Amount | How it's paid |
|---|---|---|
| Upfront guarantee fee | 1% of the loan amount | Once at closing — almost always financed into the loan, not paid in cash |
| Annual fee | 0.35% of the remaining balance | Split into monthly installments in your payment; shrinks as you pay the loan down |
| Compare: FHA upfront MIP | 1.75% of the loan amount | FHA's equivalent upfront cost — 75% higher than USDA's |
Example: on a $250,000 loan, the upfront fee is $2,500 (financed, for a $252,500 balance) and the first-year annual fee is roughly $73/month. USDA reviews the fee schedule each federal fiscal year; the rates in effect when you close apply for the life of the loan.
How the USDA loan process works
Quick eligibility check
One call with Ashland: she confirms the area you're shopping qualifies and your household income fits — before you fall in love with a house.
Get pre-approved
A full pre-approval so sellers take your offer seriously. You'll know your price range and estimated payment up front.
Shop in eligible areas
House-hunt with confidence — every address can be verified against the USDA map before you write an offer.
Offer & application
Once you're under contract, Ashland's team assembles the file: income docs, appraisal, and USDA's property review.
USDA commitment
The lender underwrites the loan and USDA issues its conditional commitment — the federal guarantee behind your $0-down financing.
Clear to close
Final conditions wrap up. You'll review your closing figures with no surprises — Ashland walks you through every line.
Get the keys
Sign, fund, done. The typical timeline runs 30–60 days from application to closing.
Meet Ashland Alitz
Ashland is a Branch Sales Manager & Loan Officer with Fairway Home Mortgage in Eden Prairie, Minnesota, and a 2025 HousingWire Rising Star. Her approach is simple: tell buyers the truth about what they qualify for, find the program that costs them the least, and stay reachable from the first call to the closing table.
- In 2024, her branch helped 900+ families achieve homeownership
- She personally closed 126 home loans totaling $43.7 million in 2024
- Named 2025 HousingWire Rising Star for leadership and production
- Licensed in 9 states, based in the Twin Cities
USDA loan questions, answered
What is a USDA home loan?
A USDA loan is a mortgage backed by the U.S. Department of Agriculture through its Rural Development Single Family Housing Guaranteed Loan Program (Section 502). It lets eligible buyers finance 100% of the purchase price — no down payment — on a home in a USDA-eligible area, with a competitive 30-year fixed rate.
Do USDA loans really require no down payment?
Yes. USDA Guaranteed Loans allow 100% financing, so eligible buyers can purchase with $0 down. You should still plan for closing costs, though seller contributions and gift funds can often cover much of that — in some transactions buyers close with very little out of pocket.
Do I have to live on a farm or deep in the country to use a USDA loan?
No. "Rural" for USDA purposes includes many small towns and suburban-edge communities — generally areas with populations under about 35,000. Many Minnesota communities outside the immediate Twin Cities core are eligible. The property address is what matters, and it takes about a minute to check.
Which Minnesota areas are eligible for USDA loans?
Much of greater Minnesota qualifies, along with many communities on the outer edge of the Twin Cities metro. Eligibility is determined address by address on the official USDA property eligibility map — Ashland can check any address for you, or you can look it up yourself before you start shopping.
What are the income limits for a USDA loan?
USDA Guaranteed Loans are designed for low- to moderate-income households. Limits vary by county and household size and are updated regularly, so the right move is to check your specific county and household — Ashland can run your numbers in a quick call, or you can use the official USDA income eligibility tool.
Do USDA loans have mortgage insurance like FHA?
Not exactly. Instead of mortgage insurance, USDA loans use a guarantee fee: a one-time upfront fee of 1% of the loan amount (almost always financed into the loan) and an annual fee of 0.35% of the remaining balance, paid monthly. Both are lower than typical FHA mortgage insurance, which is a big part of why USDA payments compare so well.
What credit score do I need for a USDA loan?
The USDA does not set a hard minimum score, and lender guidelines vary. Solid credit history helps, but the program is known for flexible credit standards. If your score is a work in progress, talk to Ashland — she can tell you where you stand today and what would strengthen your file.
Can I use a USDA loan if I already own a home?
USDA loans are for primary residences, and generally you cannot own another adequate home at the time of purchase. There are nuances — like relocations or homes that no longer meet your family’s needs — so it’s worth a conversation before ruling yourself out.
How is a USDA loan different from an FHA loan?
FHA requires a minimum 3.5% down payment and charges a 1.75% upfront mortgage insurance premium plus a higher annual premium. USDA requires $0 down with a 1% upfront guarantee fee and a 0.35% annual fee. If the property and your income qualify for USDA, it is usually the lower-cost option — Ashland can run a side-by-side comparison for your exact scenario.
How do I apply for a USDA loan with Ashland?
Call or text (612) 505-7663, email ashland.alitz@fairwaymc.com, or apply online. Ashland will confirm property and income eligibility, get you pre-approved, and guide you from offer to closing — the process typically runs 30 to 60 days from application to keys.
Find out in one call if $0 down is on the table.
No pressure, no obligation — just a clear answer on whether the home and your household qualify, and what your payment would actually look like.