USDA
Home Loans
VA Home Loans in Spokane
Housing isn’t just a need. It’s your right. For many Americans in rural communities, that right becomes a reality through USDA home loans. These federally backed mortgage programs are designed to make homeownership possible for individuals and families with low, very low, and moderate incomes.
At Canopy Credit Union, we proudly offer USDA mortgage loans in partnership with the U.S. Department of Agriculture, helping Spokane residents access safe and affordable housing. Whether you’re purchasing, repairing, or refinancing a rural property, our local lending team will guide you through every step of the USDA loan process with care and clarity.
Explore the different USDA rural home loan options below to see which one fits your financial needs. Together, let’s grow toward your homeownership goals.
What are USDA home loans and how do they work?
A USDA home loan is a government housing loan program designed to help low to moderate-income households in rural areas achieve homeownership. It offers zero-down payment, lower mortgage rates, and doesn’t require borrowers to pay for traditional private mortgage insurance (PMI). Because this home loan is backed by the USDA Rural Development Guaranteed Housing Loan, the USDA assumes the risks associated with lending.
However, borrowers have to meet specific requirements, including the purchase of property within eligible towns and rural areas.
Step 1
You can apply for a USDA home loan through an approved partner lender. In some cases, the U.S. Department of Agriculture may directly offer USDA loans to eligible borrowers who meet income and property eligibility requirements.
Step 2
Your chosen lender (or the USDA) will review your financial profile to determine your USDA home loan eligibility. This includes monthly income, monthly debts, and more to determine whether you qualify and what mortgage rate you’re eligible for.
Step 3
Once you meet the requirements, you’ll receive approval for the USDA home loan program you applied for. You can then proceed to finalize your mortgage and take the next step toward homeownership.
- USDA Loan Application Online
As a basic necessity, housing is a right. At Canopy Credit Union, we’re here to help make affordable homeownership a reality. We proudly offer USDA home loan programs to eligible borrowers in Spokane and the surrounding areas.
Start your journey to your USDA home loan application today!
USDA home loan requirements
The requirements for home loans through USDA will depend on the type of loan program that the department offers. Here are the types of USDA home loan programs that may suit your housing needs.
- Single Family Housing Guaranteed Loan Program
The Single Family Housing Guaranteed Loan Program is a USDA-backed home loan option designed to assist low to moderate-income households in rural areas. This guaranteed loan program offers 100% financing, meaning no down payment is required, making it easier for families to purchase, build, relocate, or improve their primary residence.
Single Family Housing Guaranteed Loan Program
The Single Family Housing Guaranteed Loan Program is a USDA-backed home loan option designed to assist low to moderate-income households in rural areas. This guaranteed loan program offers 100% financing, meaning no down payment is required, making it easier for families to purchase, build, relocate, or improve their primary residence.
USDA Home Loan Qualifications for Single Family Housing Guaranteed Loan Program
To qualify for this USDA loan program, borrowers must meet the following USDA home loan requirements:
- Income must not exceed 115% of the median household income for the area.
- The applicant must personally occupy the property as their primary residence.
- Must be a U.S. citizen, U.S. non-citizen national, or a qualified alien.
Property Eligibility
The property financed under this loan program must meet USDA’s rural property criteria. To check if a property qualifies, use the official USDA Eligibility Site.
- Single Family Housing Direct Home Loan
The Single Family Housing Direct Home Loan program, also known as a direct loan, helps low- and very-low-income applicants secure safe and affordable housing in eligible rural areas. Unlike the Guaranteed Loan Program, this USDA home loan offers payment assistance to reduce monthly mortgage payments, based on the borrower’s adjusted family income, thereby improving their ability to meet loan obligations.
This loan program is part of the USDA’s rural development initiative, offering an affordable path to homeownership for individuals who cannot qualify for traditional loan options.
To qualify for a direct USDA loan, applicants must meet the following USDA home loan requirements:
- Must meet the USDA home loan income limits.
- Lack of safe and sanitary housing at the time of application.
- Be unable to obtain financing through other mortgage loan programs.
- Agree to occupy the property as their primary residence.
- Have the legal capacity to take on a loan obligation.
- Be a U.S. citizen, eligible non-citizen, or qualified alien.
- Must not be suspended or debarred from federal program participation.
The property must meet the following criteria to qualify for the Single Family Housing Direct Loan:
- Must not exceed the area loan limit set for the property location.
- It cannot be designed to support income-producing activities, such as commercial farming or rental units.
- Single Family Housing Repair Loans & Grants
The USDA Single Family Housing Repair Loans & Grants program is designed to assist very low-income homeowners in eligible rural areas. This direct loan and grant program helps individuals repair, improve, or modernize their homes to meet safety and livability standards.
In addition to repair loans, the USDA also offers housing grants to elderly homeowners aged 62 or older to eliminate health and safety hazards, such as faulty wiring or hazardous structural conditions.
These USDA home loan options offer a pathway to safe, affordable housing by providing financial support to individuals who may not qualify for traditional loans or affordable credit elsewhere.
To qualify for this loan program, applicants must meet the following USDA loan requirements:
- Be the legal homeowner and occupy the home as your primary residence.
- Be unable to secure affordable credit from other lenders.
- Have a household income that does not exceed the very low-income limit set by the USDA for your county.
- For grant eligibility, the applicant must be 62 years or older and unable to repay a repair loan.
To receive assistance under this rural development loan program, the property must:
- Be located in a USDA-designated rural area.
- Meet the USDA’s property condition criteria.
To verify whether a property qualifies, visit the official USDA Property Eligibility Site.
USDA home interest rates
USDA home loan rates vary depending on the specific loan program offered.
raw land loans
While individual lenders set interest rates for these guaranteed loans, Canopy Credit Union is committed to helping you secure affordable, competitive financing.
As a local credit union, we focus on providing personalized guidance and reasonable loan options tailored to your needs. Contact us to explore current USDA home loan interest rates and see if this guaranteed loan program is right for you.
Single Family Housing Direct Home Loans
As of August 1, 2025, the interest rate for eligible borrowers is 5.125%. The interest rate applied to fixed-rate loans is based on the current market rate at the time of either loan approval or loan closing, whichever is lower. However, with payment assistance, this rate may be reduced as low as 1%, depending on household income and adjusted family income calculations.
The loan terms can extend up to 33 years, and for very low-income applicants who cannot afford standard repayment terms, a 38-year payback period is available.
Single Family Housing Repair Loans & Grants
The money and payment terms you can receive from the USDA Single Family Housing Repair Loans and Grants Program are the following:
- Maximum loan amount: $40,000
- Fixed interest rate: 1%
- Repayment term: 20 years
- A full title service is required if the total outstanding balance exceeds $25,000
- Maximum grant amount: $10,000 in a lifetime per eligible applicant
- In presidentially declared disaster areas, the maximum grant increases to $15,000
- If the property is sold within three years, the grant must be repaid
- Borrowers may combine repair loans and grants for up to $50,000 in total support
- In federally declared disaster zones, the combined amount may reach $55,000
calculate your USDA mortgage payment
Wondering what your monthly USDA mortgage payment might look like? Use our easy USDA home loan calculator to estimate your future payments. Simply enter the key loan information, including home price, loan amount, interest rate, and loan term. From there, we’ll instantly show you a breakdown of your estimated USDA home loan payment each month, including taxes and insurance where applicable.
USDA loan FAQs
First-time and repeat homebuyers are eligible for all USDA home loan programs.
Closing costs will depend on the lender and state-specific factors. While it’s possible to use gift funds to pay for your closing costs, we recommend obtaining a gift letter from your loan officer as proof of transfer to accompany your loan application.
USDA has three refinancing programs: USDA Streamline, Streamline-Assist, and non-streamlined refinance. USDA does not offer any cash-back options.
USDA payment terms are available at fixed rates for 30-year and 15-year periods.
As long as the property meets USDA property eligibility requirements, USDA loans can be used to purchase foreclosed homes, short sales, and homes sold by financial institutions and real estate agencies after a bankruptcy.
our latest articles
USDA loan resources
Learn more about USDA home loans and other lending options available that you may qualify for. At Canopy Credit Union, we help you achieve your housing goals by making a diverse range of home and land loan programs accessible to the Spokane community.
News Listing Grid will go here. Waiting for News population.