Rural Development (USDA) Financing

Oklahoma has many growing communities with a bustling real estate market, where Rural Development Financing may be a great solution. At First American Mortgage, we’ll guide you through the process of identifying Rural Development Financing options that are available for you through this U.S. Department of Agriculture (USDA) program. 


A USDA home loan is a zero-down payment mortgage for eligible rural and suburban homebuyers. USDA loans are issued through the USDA loan program, also known as the USDA Rural Development Guaranteed Housing Loan Program.

The program’s mission is to help lenders work with low and moderate-income families living in rural areas to make homeownership a reality. Providing affordable homeownership opportunities promotes prosperity, which in turn creates thriving communities and improves the quality of life in rural areas.


Who qualifies for Rural Development Financing?

Applicants for single-family housing must:

  • Meet income and property eligibility. Property eligibility is set on a county-by-county basis.

  • Agree to personally occupy the dwelling as their primary residence.

  • A minimum credit score of 640

  • The front end ratio is 29/Back end ratio is 41

  • Borrowers are required to finance an upfront mortgage insurance premium (UFMIP) of 1.00% of the total loan amount and also pay monthly mortgage insurance (MMI) at a maximum of .35% of the loan amount annually.

  • Have not been suspended or debarred from participation in federal programs.

  • Demonstrate the willingness to meet credit obligations in a timely manner.

  • Purchase a property that meets all program criteria.


Rural Development loan requirements set by the U.S. Department of Agriculture include:

  • USDA specifies that funds backed by loan guarantees be used for:

  • New or existing residential property to be used as a permanent residence. Closing costs and reasonable/customary expenses associated with the purchase may be included in the transaction.

  • A site with a new or existing dwelling.

  • Refinancing of eligible loans.

Contact your loan officer to see if you qualify for this or other Rural Development Financing!