USDA Loans in NC, SC & GA
Quick answer
What is a USDA loan?
A USDA loan, formally the USDA Single Family Housing Guaranteed Loan, lets eligible buyers purchase a primary residence with $0 down in USDA-designated rural and many suburban areas. Household income must be at or below 115% of the area median, and the loan carries a 1% upfront guarantee fee and a 0.35% annual fee.
USDA loans offer $0 down for eligible buyers in rural and suburban areas, and more of NC, SC, and Georgia qualifies than most people expect. There are income limits, but the eligible areas are broader than "farmland." Many towns just outside the bigger metros qualify. Here is how the program works and how to check an address before you fall in love with a house.
USDA at a glance.
| Minimum down payment | $0 (100% financing) |
|---|---|
| Typical minimum credit | Around 640 for automated approval through USDA's GUS system; lower scores may be manually underwritten by some lenders |
| Mortgage insurance | 1% upfront guarantee fee (can be financed) plus 0.35% annual fee paid monthly |
| Occupancy | Primary residence only |
| Loan limits | No set maximum loan amount for the guaranteed program; household income must be at or under 115% of area median |
| Best for | Moderate-income buyers open to eligible areas who want to keep cash to close low |
General guidelines only. Lenders can add their own requirements, and program rules change.
How it works.
The USDA Guaranteed Rural Housing program lets eligible buyers finance 100% of the price on a primary residence in a USDA-eligible area. Two things drive eligibility: the property location (it must be in a designated area on USDA's map) and your household income (it must be at or under the limit for your county and household size, which is 115% of area median income). USDA loans have a guarantee fee, 1% upfront plus 0.35% per year, which is lower than FHA mortgage insurance. We check both the map and the income limit before you shop.
How the property map works
USDA publishes an eligibility map on its website. You can type in an address and see whether it falls inside an eligible area. Eligibility is based on USDA's definitions, not on how rural a place looks, so many subdivisions just outside city limits qualify while some small-looking areas do not. Maps are updated periodically, so we check the specific address.
How the income limit works
For eligibility, USDA counts the income of all adults in the household, even if they are not on the loan. For repayment, it looks at the borrowers' income and debts. Allowable deductions, such as for dependent children or childcare, can bring counted income down. The limit is 115% of the area median and varies by county and household size.
What USDA can finance
The upfront guarantee fee can be financed into the loan. If the home appraises above the price, closing costs can sometimes be financed up to the appraised value. Sellers can also contribute toward closing costs. That means some USDA buyers close with very little cash, beyond earnest money and prepaid items.
Who it's best for.
Buyers open to eligible areas who want to keep their down payment low.
- Moderate household incomes under the county limit
- Buyers shopping in towns and suburbs outside the metro cores
- Buyers with limited savings but steady income and credit around 640 or higher
- Families who want lower mortgage insurance than FHA
When another loan may be better.
- Household income above 115% of area median
- Homes inside city limits of larger cities that fall outside eligible areas
- Investment properties, second homes, or income-producing farms
- Buyers who want a 15-year term or adjustable rate (the guaranteed program is 30-year fixed)
How the process works, start to finish.
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1
Check the address
Send me an address or area and I will check USDA's eligibility map before you start touring.
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2
Check household income
We count all adult household income, apply allowable deductions, and compare it to the county limit.
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3
Pre-approval through GUS
Your lender submits the file through USDA's Guaranteed Underwriting System for an automated decision.
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4
Appraisal and lender underwriting
The appraisal confirms value and basic property standards, then the lender underwrites the file.
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5
USDA final review and closing
USDA issues its conditional commitment, which adds a step compared with other loans, then you close with your attorney.
What you'll typically need.
- Income documentation for every adult in the household
- Pay stubs covering 30 days
- Two years of W-2s or tax returns
- Two months of bank statements
- Photo ID
- Childcare cost documentation if claiming the deduction
Common reasons files get denied or delayed.
- Household income over the limit after counting all adults
- Property just outside the eligible area boundary
- Debt ratios above what GUS approves
- Well, septic, or property condition issues found during appraisal
- USDA's final review adding time that the contract did not allow for
What's different in the Carolinas and Georgia.
- Much of North Carolina, South Carolina, and Georgia outside the urban cores is USDA eligible, including many towns around Greenville, Asheville, Myrtle Beach, Macon, and Athens. Always check the specific address.
- Homes on well and septic, common in rural parts of all three states, may need water tests and septic inspections depending on the lender and appraiser.
- State down payment assistance programs in all three states can pair with USDA to help with closing costs, subject to each program's rules and to a participating lender being available.
- North Carolina, South Carolina, and Georgia all use attorneys to close real estate transactions, so a local closing attorney (not just a title company) will handle your closing, title work, and recording. Build their fee and schedule into your timeline.
Helpful tools
Related guides
Common questions: USDA.
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How do I know if a home qualifies for USDA?
It is based on USDA's eligibility map, not just how rural it feels. Send me an address and I will check it.
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What are the USDA income limits?
The limit is 115% of the area median income, and it varies by county and household size. USDA counts all adult household income for eligibility. We confirm yours before you shop.
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Is a USDA loan really $0 down?
Yes, USDA guaranteed loans allow 100% financing for eligible buyers. You still need money for earnest money and possibly some closing costs, though sellers can contribute and some costs can be financed.
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What does USDA mortgage insurance cost?
USDA charges a 1% upfront guarantee fee, which can be financed, and a 0.35% annual fee paid monthly. That is generally lower than FHA mortgage insurance.
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What credit score do I need for a USDA loan?
Around 640 is typical for automated approval through USDA's system. Some lenders will manually underwrite lower scores with strong compensating factors.
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Do I have to be a first-time buyer for USDA?
No. You do not have to be a first-time buyer, but the home must be your primary residence and you generally cannot own another adequate home nearby.
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Can I use a USDA loan in a suburb?
Often, yes. Many suburban areas and towns outside larger cities in NC, SC, and Georgia fall inside USDA eligible areas. It depends on the exact address.
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How long does a USDA loan take to close?
USDA adds a final agency review after the lender approves the loan, so plan for a bit more time than a conventional or FHA loan. I build that into the contract timeline.
Sources: USDA Rural Development Handbook HB-1-3555; USDA eligibility site (eligibility.sc.egov.usda.gov); USDA guarantee fee announcements.
Last reviewed September 2026 by Keith Lopez, NMLS #2814077.
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A note on program availability & disclosures
Program eligibility, guidelines, and pricing are set by the applicable investor, agency, or program (FHA, VA, USDA, Fannie Mae, Freddie Mac, and others) and are subject to change without notice. Not all applicants will qualify. This information is for educational purposes only and is not a commitment to lend or a guarantee of approval, rate, payment, or closing date. It is not tax or legal advice. Equal Housing Opportunity.
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Keith Lopez, NMLS #2814077 | NEXA Mortgage, LLC, NMLS #1660690 | Licensed in NC, SC & GA | Equal Housing Opportunity