Purchase Loans
USDA
Buying in a rural or suburban area? Zero down and low rates.
USDA loans are backed by the U.S. Department of Agriculture's Rural Development program and offer zero-down financing for homes in eligible rural and suburban areas. The word "rural" is misleading — far more of Washington qualifies than you'd think, including the outer rings of Snohomish, Pierce, Skagit, Whatcom, Spokane, and the Tri-Cities.
Key Features
- • Zero down payment required
- • Below-market interest rates (often the best of any program)
- • Mortgage insurance roughly half of FHA's
- • Income limits apply (varies by county and household size)
- • Property must be in a USDA-eligible area
- • Sellers can contribute up to 6% toward closing costs
How USDA works
USDA's Section 502 Guaranteed Loan Program is the version 99% of buyers use. The USDA guarantees a portion of the loan against default, which lets approved lenders (including me) offer zero-down financing without traditional PMI. You apply, I verify income and eligibility, the home gets appraised and confirmed in an eligible area, USDA issues a Conditional Commitment, and we close.
USDA-eligible Washington areas (a sample)
Marysville (parts), Sultan, Gold Bar, Granite Falls, Bonney Lake (parts), Buckley, Enumclaw, Yelm, Rainier, Eatonville, Sequim, Port Angeles, much of Skagit and Whatcom counties outside city centers, Chelan, Leavenworth, Wenatchee outskirts, Spokane Valley fringes, Cheney, Medical Lake, Ellensburg, and large portions of the Tri-Cities periphery. Always verify by exact address — eligibility boundaries change every few years.
Pros
- • Zero down — competes with VA
- • Lowest mortgage insurance of any low-down option
- • Below-market rates
- • No first-time-buyer requirement
Cons
- • Property must be in an eligible area
- • Household income caps apply
- • Primary residence only
- • Slightly longer close (USDA conditional commitment step)
Best for: Moderate-income WA buyers looking outside the major metro cores. If your dream home is in Sultan, Yelm, Marysville, the Tri-Cities outskirts, or Eastern Washington, USDA might be your cheapest path to homeownership in the state.
Common Questions
Popular WA markets for USDA
USDA works on the outskirts of these markets — I'll check exact address eligibility for you.