When you apply for a mortgage backed by the United States Department of Agriculture (USDA), you'll still want to determine how much you can afford on a monthly basis and shop for competitive interest rates, just as any potential homeowner would. 

USDA mortgages offer lower down payments, more favorable qualifying criteria, and options for those with less-than-perfect credit or no formal credit history.

  • You may be interested in a USDA mortgage if you have less than 20% of the home value to contribute as a down payment or less than 20% equity in your current home
    • Purchase a new home with no down payment
    • The Guaranteed Rural Housing Loan is available in a fixed-rate mortgage for homes that are used as a primary residence located in rural areas
  • There are some income limitations on a USDA loan. Visit the USDA's website for an automated income eligibility calculator.
  • No prepayment penalty. You may pay some or all of your loan balance in advance without a penalty.

A Flagstar Bank lending expert can help you select the right loan and terms for your situation. Call a mortgage specialist at (855) 372-5626.

After you close on your new loan, you can check your balance and make your payment online through our MyLoans system.