If you’ve heard that USDA loans are only for farms, we’ve got some catching up to do.
One of the biggest misconceptions about USDA home loans is that you need to live in the middle of nowhere, own livestock, or buy a bunch of acreage.
You don’t.
USDA loans are designed to help eligible buyers purchase homes in qualifying rural and suburban areas. And here in Louisiana, there are more potentially eligible areas than many people realize.
What Is a USDA Home Loan?
A USDA Guaranteed Loan is a government-backed mortgage program designed for eligible low- and moderate-income households.
One of its biggest advantages is 100% financing, meaning eligible buyers can purchase a home without a required down payment.
That doesn’t necessarily mean you’ll bring zero dollars to closing. Closing costs, prepaid expenses, and other charges still exist, although there may be ways to reduce your out-of-pocket expenses.
Where Can You Use a USDA Loan in Louisiana?
USDA eligibility isn’t determined by whether a property looks rural.
It’s determined by the property’s location on USDA’s eligibility map.
Some communities outside Shreveport, Bossier City, and Alexandria may qualify, depending on the specific address.
The best way to know is to check the actual property.
USDA Household Income: The Part People Miss
Here’s where USDA loans get interesting.
Unlike many mortgage programs, USDA considers income from eligible adult household members when determining whether the household falls within the program’s income limits.
That doesn’t mean every household member has to be on the mortgage.
It means household income eligibility and qualifying income for the mortgage are two different calculations.
Certain allowable deductions and adjustments may also apply, including some related to dependents, childcare, and disability.
This is why I don’t automatically tell somebody they’re over the USDA income limit without reviewing the entire household situation.
Can You Buy a Manufactured Home With USDA Financing?
Potentially, yes.
USDA financing can be available for qualifying manufactured homes, subject to program requirements, property standards, lender guidelines, and the specific transaction.
Single-wide and double-wide homes may be eligible in qualifying circumstances.
Not every manufactured home will qualify, so it’s important to review the details before making an offer.
Is a USDA Loan Right for You?
A USDA loan may be worth exploring if:
- You want to buy in an eligible area.
- Your household meets the applicable income limits.
- You meet the credit, income, and underwriting requirements.
- You want to explore purchasing without a required down payment.
Work With a Louisiana USDA Loan Specialist
I’m Leslie Tyler with J & L Mortgage, an independent mortgage brokerage serving buyers in Louisiana.
USDA loans are one of my specialties, and I believe in reviewing the actual guidelines rather than making assumptions about who qualifies.
If you’re looking at homes around Shreveport, Bossier City, Alexandria, or other eligible Louisiana communities, I’d be happy to help you explore your options.
You don’t need a farm. You need the right information.
USDA loans are subject to property eligibility, household income limits, credit approval, and program guidelines. Zero down payment does not mean zero closing costs.