USDA Loans in Alabama and Florida: 0% Down for Eligible Buyers (2026)
A USDA loan lets you buy a home in an eligible rural or suburban area with no down payment. If you earn within the income limit and plan to live in the home, it can be the cheapest way into a house in Alabama or Florida.
Start your USDA loan application here or get a quote.
USDA loan benefits at a glance
| Feature | What it means for you |
|---|---|
| Down payment | None required. USDA says eligible buyers can finance 100 percent. |
| Closing costs | Loans are based on appraised value, so closing costs can potentially be included. |
| Rate and term | 30 year fixed only. The rate is set by the lender. |
| Credit score | USDA sets no minimum score. Many lenders look for 640 or higher. |
| Income limit | Household income cannot exceed 115 percent of the median for the area. |
| Where you can buy | Homes in eligible rural areas. Many suburbs and small towns qualify, and you check by address. |
| Occupancy | Primary residence only. |
How a USDA loan works
The loan is made by a private lender. The U.S. Department of Agriculture guarantees 90 percent of it, which lowers the lender risk and is the reason no down payment is needed. The program has two checks: the property has to be in an eligible area, and the household has to be under the income limit.
Both checks are free. USDA runs a property and income eligibility site where you enter an address and see the answer.
USDA loan requirements in Alabama and Florida
Property
The home must sit in an eligible area. USDA lists detached homes, attached homes, condos, planned unit developments, modular homes and manufactured homes as eligible structure types, and the home cannot be an income producing property. There is no set maximum purchase price. The home has to be safe, structurally sound and sanitary, and a USDA approved appraiser values it.
Income
USDA states that income cannot exceed 115 percent of the median household income for the area. Rocket Mortgage reported baseline caps in 2026 of $119,850 for households of one to four people and $158,250 for households of five to eight, with higher caps in expensive counties. Lenders count gross income for every adult in the home, so confirm your household number with us.
Credit and debt
USDA does not set an official minimum credit score. It expects you to show you can manage debt. Many lenders look for a score of 640 or higher and a debt to income ratio near 41 percent, and higher ratios can be approved with compensating factors. Ask us where your file stands before you decide.
Occupancy and citizenship
You must live in the home as your primary residence. Vacation homes, second homes and rentals do not qualify. Applicants must be U.S. citizens, U.S. non-citizen nationals or qualified aliens.
What a USDA loan costs
The loan carries a guarantee fee in place of traditional mortgage insurance. Rocket Mortgage lists the upfront fee as 1 percent of the loan, which can be financed, and the annual fee as 0.35 percent of the remaining balance, added to the monthly payment. USDA can change these fees, so we confirm the current figures in writing before you commit.
On a $250,000 loan, 1 percent is $2,500 and 0.35 percent a year is about $73 a month at the start. These are illustrations and not a quote.
See what your price does to your payment on the free mortgage payment calculator. It shows conventional, FHA and VA, so use it as a comparison and ask us for the USDA figures.
USDA, FHA, VA or conventional
| Loan | Down payment | Best fit |
|---|---|---|
| USDA | 0 percent | Moderate income buyers in eligible areas |
| FHA loans | 3.5 percent | Lower credit or higher debt, any location |
| VA loans | 0 percent | Veterans and service members |
| Conventional loans | 3 to 5 percent | Higher credit scores and higher income |
The right answer depends on your income, your credit and where the house sits. We price the loans that fit you side by side. For help with cash to close, read about down payment assistance in Alabama and Florida, the first time homebuyer programs and lender credits. See what a 5 percent down payment compares to 20 percent if a USDA home is not available in your area.
How to get started
First, check the address of any home you like on the USDA eligibility site. Second, tell us your household size and gross income. Third, we run the loan options and send you a written estimate. A file with a Fast Pass pre-approval reads stronger to a listing agent. For the cash to close, use the closing cost calculator.
Start your USDA loan application here or get a quote.
USDA loan FAQ
Do I need a down payment for a USDA loan?
No. USDA offers 100 percent financing to eligible buyers, and loans are based on appraised value, so closing costs can potentially be included.
What credit score do I need for a USDA loan?
USDA sets no minimum score. Many lenders look for 640 or higher, and we tell you plainly where your score lands.
What is the USDA income limit?
Household income cannot exceed 115 percent of the median for the area. The cap depends on the county and the number of people in the household.
Can I use a USDA loan in a city?
The home must be in an eligible area, which is mostly rural and many suburban and small town locations. Boundaries change, so check each address on the USDA eligibility site.
Can I use a USDA loan for a second home or an investment property?
No. The home must be your primary residence and cannot be income producing.
Is the USDA loan a fixed rate?
Yes. USDA guaranteed loans are 30 year fixed only, and the lender sets the rate.
Does Mountain Mortgage offer USDA loans in Alabama and Florida?
Mountain Mortgage lends in Alabama and Florida. Start the application above and we will confirm whether a USDA loan fits your address and income.
Figures on this page are illustrative and based on the U.S. Department of Agriculture Rural Development program page updated October 2026 and Rocket Mortgage guidance updated September 2026. They are not a rate quote or an offer of credit. Program rules, fees and income limits change. Mountain Mortgage NMLS #2720886 | Paul Leara NMLS #2233772. Equal Housing Lender.