First time buyers in Virginia are often surprised to find that the USDA still offers 100% home mortgages. In fact, the USDA RD mortgage is the last 100% home loan available in Virginia, unless the applicant has VA loan eligibility. The USDA mortgage program is designed to help promote homeownership in less populated locations around VA.
The great thing is, the term “rural” is used loosely. In fact, many larger cities have outlined areas that are qualified for USDA home funding. Locations around major cities like Richmond, Norfolk, Roanoke, etc. have USDA-eligible locations around them. Interested homebuyers can click on the USDA eligible property map below and input their location.
The USDA loan program will allow homebuyers to borrow up to 101% of the home’s appraised value. In addition, homebuyers can include closing costs into their loan assuming their appraised value is sufficient. Please click on the UDSA link to learn more.
Some benefits of a Virginia 100% USDA mortgage include:
- 101% Financing, No Down Payment required!
- Low monthly mortgage insurance (PMI) and one-time USDA funding fee that is included in your loan.
- No Loan Amount limits.
- No Cash Reserve Requirements
- 6% Seller contribution allowed for closing costs
- 100% gifted closing costs allowed
- 30 year low fixed-rate loan
- No Prepayment Penalty – ever.
- Primary Residents only (no rentals/investments or vacation homes permitted)
To qualify for the USDA loan program, there are two main requirements that differ from the other government loan programs (FHA, conventional)
Property Location – The home must be located in a USDA-eligible designated rural area. Please click here to input a property address and check eligibility. Remember, the seller of the property is not important, just where the property is physically located.
Household Income – Each county has different USDA Income restrictions. But for a standard family of 1–4 members in 2025, the income limit is over $112,450. Income limits are even higher for larger families. Please click here to learn more
Homebuyers that want to apply or learn more can reach out to us 7 days a week by calling the number above, or just submit the Quick Request Form on this page.