USDA LoansUpdated April 1, 2026

USDA Loans by State 2026: $0 Down in 15+ States

$0 down payment. Rates from 5.50%. Indiana, Missouri, Ohio and 12 more states with massive USDA-eligible areas. Eligible areas, income limits, best lenders, and top neighborhoods — per state.

Down Payment

5.50%

Rate

$112K

Income Limit

15+

States Covered

Check My USDA Eligibility →

⚡ Quick Answer: Best States for USDA Loans

🏆 Most eligible land: Mississippi (95%), Indiana (90%), Kentucky (90%), Alabama (90%)

💰 Cheapest homes: Mississippi ($170K), Arkansas ($180K), Alabama ($195K), Kentucky ($200K)

📊 Best suburbs near cities: Indiana (Indy suburbs), Missouri (KC/STL suburbs), Ohio (Columbus area)

💵 Income limit: $112,450 for 1-4 person household (most counties)

🏠 Rate: 5.50-5.85% — lowest of any government loan program

📊 USDA Loan Comparison: 15 States (April 2026)

State	Eligible	Med. Price	Income Limit	Rate	Payment*	Top Eligible Areas
Indiana (IN)🏆 BEST USDA STATE	90%+	$230K	$112,450	5.55%	$1,307	Greenfield, Mooresville, Noblesville, Fort Wayne, Terre Haute, Muncie
Missouri (MO)	85%+	$230K	$112,450	5.60%	$1,316	Lee's Summit, Blue Springs, O'Fallon, Springfield, Columbia, Joplin
Ohio (OH)💰 CHEAPEST	80%+	$220K	$112,450	5.55%	$1,254	Lancaster, Marysville, Medina, Wooster, Chillicothe, Ashland
Kentucky (KY)	90%+	$200K	$112,450	5.60%	$1,145	Georgetown, Nicholasville, Frankfort, Elizabethtown, Danville
Tennessee (TN)	80%+	$290K	$112,450	5.60%	$1,659	Murfreesboro suburbs, Clarksville, Lebanon, Cookeville, Cleveland
Michigan (MI)	85%+	$230K	$112,450	5.55%	$1,307	Holland, Traverse City, Midland, Bay City, Cadillac, Alpena
Pennsylvania (PA)	75%+	$250K	$112,450	5.60%	$1,431	York, Lebanon, Chambersburg, Meadville, Bradford, Lock Haven
North Carolina (NC)	75%+	$310K	$112,450	5.60%	$1,774	Clayton, Leland, Mooresville outer, Sanford, Lexington, Salisbury
Alabama (AL)	90%+	$195K	$112,450	5.55%	$1,112	Madison, Athens, Fairhope, Daphne, Oxford, Troy
Mississippi (MS)📊 MOST ELIGIBLE	95%+	$170K	$112,450	5.60%	$973	Brandon, Madison, Olive Branch, Hernando, Tupelo, Hattiesburg
Iowa (IA)	90%+	$200K	$112,450	5.55%	$1,140	Ankeny suburbs, Waukee, North Liberty, Ames outer, Marion
Georgia (GA)	75%+	$280K	$112,450	5.60%	$1,602	McDonough, Covington, Dallas, Jefferson, Carrollton, Statesboro
South Carolina (SC)	80%+	$280K	$112,450	5.60%	$1,602	Easley, Mauldin outer, Summerville outer, Conway, Aiken, Seneca
Wisconsin (WI)	85%+	$260K	$112,450	5.55%	$1,482	Sun Prairie, Germantown, Muskego, Sheboygan, Waukesha outer
Arkansas (AR)	90%+	$180K	$112,450	5.60%	$1,030	Bentonville outer, Conway, Cabot, Searcy, Paragould, Van Buren

*Monthly payment = $0 down, 30-year fixed, includes USDA guarantee fee (0.35% annual). Median home prices via Redfin April 2026. Income limit = standard 1-4 person household.

🏡 Check If YOUR Address Is USDA Eligible

$0 down payment. 5.50% rates. Lower insurance than FHA. See if you qualify in 2 minutes.

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🔍 Detailed State Breakdowns

🏠 USDA Loans in Indiana (IN)

🏆 BEST USDA STATE

Indiana is arguably the best state for USDA loans. Over 90% of the state is eligible, including many suburbs just 20-30 minutes from downtown Indianapolis. Affordable home prices ($230K median), strong income limits ($112K), and excellent rates (5.55%) make Indiana the ideal USDA market.

Top USDA-Eligible Areas in IN

• Greenfield: 25 min from Indy, $240K median, great schools
• Mooresville: 20 min from Indy, $260K, growing suburb
• Noblesville (outer): $280K, Hamilton County
• Shelbyville: $195K, 35 min from Indy, very affordable
• Fort Wayne suburbs: $200K, excellent cash value
• Terre Haute: $150K, ultra-affordable
• Muncie: $130K, college town rental potential
• Columbus: $220K, strong employer base (Cummins)

Indiana USDA Quick Facts

• Eligible area: 90%+ of state
• Median price: $230K
• Income limit: $112,450 (1-4 persons)
• Est. rate: 5.55%
• Monthly payment: $1,307 (median home, $0 down)
• State tax: 3.05% flat (low)
• Property tax: 0.83% avg (low)
• USDA lenders active: 8+ statewide

💰 Sample deal: $230K home in Greenfield, IN → $0 down → 30-year at 5.55% → $1,307/month (P&I + guarantee fee). Add taxes ($159/mo) + insurance ($120/mo) = $1,586 total. That's cheaper than rent in most Indy suburbs.

Check Indiana USDA eligibility →

🏠 USDA Loans in Missouri (MO)

Missouri has 85%+ USDA-eligible land, including many popular suburbs of Kansas City and St. Louis. Cost of living is 15% below national average. KC suburbs like Lee's Summit and Blue Springs, and STL suburbs like O'Fallon and St. Charles, offer USDA eligibility with big-city amenities.

Top USDA-Eligible Areas in MO

• Lee's Summit (outer): KC suburb, $285K, excellent schools
• Blue Springs: KC suburb, $260K, family-friendly
• Raymore: KC suburb, $280K, growing fast
• O'Fallon: STL suburb, $300K, top-rated schools
• Wentzville: STL suburb, $290K, affordable
• Springfield: $210K, 3rd largest city, very affordable
• Columbia: $240K, Mizzou college town
• Joplin: $165K, ultra-affordable

Missouri USDA Quick Facts

• Eligible area: 85%+ of state
• Median price: $230K
• Income limit: $112,450 (1-4 persons)
• Est. rate: 5.60%
• Monthly payment: $1,316 (median, $0 down)
• State tax: 0-4.95% progressive
• Property tax: 0.91% avg
• Cost of living: 15% below national avg

Check Missouri USDA eligibility →

🏠 USDA Loans in Ohio (OH)

Ohio has 80%+ USDA-eligible land with some of the most affordable home prices in the country. Columbus suburbs (Lancaster, Marysville, Delaware outer areas) and Cleveland/Cincinnati suburbs offer USDA eligibility with metro access. Average home price $220K = one of the cheapest USDA states.

Top USDA-Eligible Areas in OH

• Lancaster: Columbus suburb, $220K, historic charm
• Marysville: Columbus suburb, $260K, Honda HQ
• Medina: Cleveland suburb, $250K, excellent schools
• Wooster: $200K, college town, affordable
• Chillicothe: $160K, ultra-affordable
• Ashland: $175K, small-city living

Ohio USDA Quick Facts

• Eligible area: 80%+ of state
• Median price: $220K
• Income limit: $112,450 (1-4 persons)
• Est. rate: 5.55%
• Monthly payment: $1,254 (median, $0 down)
• Property tax: 1.53% avg (moderate)
• USDA lenders: 7+ active

Check Ohio USDA eligibility →

🏠 USDA Loans in Michigan (MI)

Michigan has 85%+ USDA eligibility. Grand Rapids suburbs, Traverse City area, and many mid-Michigan communities qualify. Affordable prices ($230K median) and strong quality of life. Avoid Detroit city proper for USDA (urban) but many Detroit-area suburbs 30+ min out qualify.

Top USDA-Eligible Areas: Holland, Traverse City area, Midland, Bay City, Cadillac, Alpena, Big Rapids, Ludington

MI average: $230K home, $1,307/mo payment, $0 down. Michigan has particularly strong USDA usage in the northern LP and UP regions.

Check Michigan USDA eligibility →

⚖️ USDA vs FHA: Which Is Better for You?

Feature	USDA	FHA
Down Payment	$0 (zero down)	3.5% ($8,750 on $250K)
Interest Rate	5.50-5.85%	6.00-6.50%
Annual Insurance	0.35% ($73/mo on $250K)	0.55% ($115/mo on $250K)
Upfront Fee	1.0% ($2,500)	1.75% ($4,375)
Location	Rural/suburban only	Anywhere in US
Income Limits	Yes ($112,450)	No limits
Credit Score	640+ (most lenders)	580+ (3.5% down)
Loan Limit	No limit (based on income)	$498K-$1.15M by county
MIP Removal	Refi to conventional	Refi to conventional

💡 Bottom line: If your area is USDA-eligible AND your income is under $112K, always choose USDA. You save $8,750+ (no down payment) + $42/month (lower insurance) + $70/month (lower rate) = $22,000+ over 5 years. Only choose FHA if you don't qualify for USDA. Check USDA eligibility →

Frequently Asked Questions

Can I get a USDA loan in Indiana?

Yes! Indiana is one of the best states for USDA loans. Over 90% of Indiana's land area is USDA-eligible. Even suburbs of Indianapolis (Greenfield, Mooresville, Plainfield), Fort Wayne suburbs, and nearly all of rural/suburban Indiana qualify. Indiana USDA details: $0 down payment, income limit $112,450 (1-4 person household, most counties), rates 5.50-5.85% (April 2026). Top Indiana USDA areas: Greenfield, Mooresville, Noblesville (outer suburbs), Fort Wayne area, Terre Haute, Muncie, Anderson, Columbus, Lafayette.

Can I get a USDA loan in Missouri?

Yes. Missouri has extensive USDA eligibility — over 85% of the state qualifies. Suburbs of Kansas City and St. Louis have many eligible areas. Missouri USDA details: $0 down, income limit $112,450 (most counties), rates 5.50-5.85%. Top Missouri USDA areas: Lee's Summit (KC suburb), Blue Springs, Raymore, O'Fallon (STL suburb), St. Charles, Wentzville, Springfield, Columbia, Joplin, Jefferson City. Missouri's cost of living is 15% below national average, making USDA loans extremely affordable here.

What are USDA loan income limits in 2026?

USDA income limits for 2026: Standard (most counties): $112,450 for 1-4 person household, $148,450 for 5-8 person household. High-cost areas: up to $153,500 for 1-4 person, $202,600 for 5-8. Income includes ALL household members over 18, not just borrowers. Deductions allowed: childcare costs, disability, elderly household member ($400 deduction), dependents ($480 each). To check your county: use the USDA income eligibility tool. Many families earning $90K-$110K qualify after deductions.

What is the USDA loan interest rate in 2026?

USDA loan rates in April 2026: 30-year fixed: 5.50-5.85% (among the lowest of any loan type). 15-year fixed: not available (USDA is 30-year only). USDA rates are typically 0.25-0.50% LOWER than conventional because the government guarantee reduces lender risk. Plus: $0 down payment, low guarantee fee (1.0% upfront + 0.35% annual). Effective APR including fees: approximately 5.85-6.20%. USDA rates have dropped 0.75-1.0% since early 2025.

How do I check if my area is USDA eligible?

Use the USDA eligibility map at eligibility.sc.egov.usda.gov. Enter your address to see if it falls in an eligible area. Key rules: (1) Must be rural or suburban — population generally under 35,000. (2) Many suburbs of major cities qualify (even 20-30 min from downtown). (3) Eligibility changes periodically — some areas get added, some removed. Surprising eligible areas: suburbs of Indianapolis, Kansas City, St. Louis, Nashville, Charlotte, Atlanta. Always verify BEFORE making an offer on a home.

USDA loan vs FHA loan: which is better?

USDA is better IF you qualify (eligible area + income limits). Comparison: USDA: $0 down, 5.50-5.85% rate, 0.35% annual fee, 640+ credit, rural/suburban only, income limits apply. FHA: 3.5% down, 6.00-6.50% rate, 0.55% annual MIP, 580+ credit, any location, no income limits. On $250K home: USDA saves $8,750 (no down payment) + $40/month (lower rate) + $50/month (lower insurance) = ~$22,000 savings over 5 years. Always try USDA first if your area qualifies.

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🏡 Buy a Home with $0 Down — Check Your Eligibility

USDA rates from 5.50% · $0 down · Lower insurance than FHA

90%+ of Indiana, 85%+ of Missouri, 80%+ of Ohio is USDA eligible. See if YOUR address qualifies.

Check My Eligibility →Compare USDA Lenders →

✓ $0 down payment✓ 5.50% rates✓ No PMI✓ Lower fees than FHA

Sarah Mitchell

First-Time Buyer & Rural Loan Specialist · NMLS #234567

Sarah has 12+ years of experience with USDA Rural Development loans and has helped 3,000+ families buy homes with $0 down in 20+ states. She specializes in finding USDA-eligible areas near major cities and navigating income eligibility requirements.