Need help applying for a USDA Loan in Minnesota? Do not go it alone. Mortgages Unlimited, and out highly trained USDA loan experts are here to act as your guide.


By obtaining a USDA Rural Development loan, Minnesota residents can obtain a ZERO DOWN PAYMENT government funded home loan that also allows you to roll your closing costs into the loan.


Most homebuyer using this loan program obtain their home with less than $1,000 out-of-pocket!


Minnesota Areas That Qualify for USDA Loans


The term "Rural Development Loan" can be somewhat misleading.  The USDA loan is not just for Minnesota farmers, and you don't need to live in a cornfield.


Large areas of Minnesota qualify for the USDA Rural Housing loan. In general, communities located outside of major metropolitan areas, and communities less than 20,000 residents may qualify.


Never assume your area doesn't qualify for a USDA loan.  Call our USDA experts at (651) 552-3681 to discuss location eligibility questions, or check USDA Loan Location Eligibility online.


Minnesota's USDA Loan Income Limits


The USDA Rural Development Loan is a "means tested" program. This means there are income guidelines, and if your household makes too much money, you will not qualify.


The good news is, the income limits are very liberal, and most families will qualify for the USDA zero down payment loan program.


The income guidelines vary by both county the home is located, and your family size. Never assume your family doesn't qualify for a USDA loan.  Call our USDA experts at (651) 552-3681 to discuss location eligibility questions, or check USDA Loan Income Limit Eligibility online.

USDA Program Program Highlights

  • Zero down payment - You can finance 100% of the purchase price

  • Seller paid closing costs - You can roll costs into the loan

  • Very cheap mortgage insurance compared to other mortgage loans options

  • Homes more affordable, and more people qualify because of low PMI

  • Good credit or better required - Doesn't need to be perfect, but bad credit not OK.

Type of Home the Qualifies for a USDA Loan


The home must be on a publicly maintained road, or in a development with private roads. It must be a single family home (no duplexes), must be owner occupied (no investment homes), and may not produce income.


No business can operate on the property.  A hobby farm is OK, but agricultural land that is getting farm income (even from renting part of the land), or any property that will be farmed is not OK.


Properties that have a significant number of building other than the home itself, such as pole sheds, old barns, and old silo's can be an issue with the USDA Loan.  Call our MN USDA Loan Experts at (651) 552-3681 to discuss any questionable properties BEFORE signing a purchase agreement.


Paying USDA Loan Closing Costs


All mortgage loans have closing costs. Lender fees, appraisal, credit report, title company, state taxes, origination fees, and more.


These need to be paid for by you the home buyer. The best way is always for the buyer to pay cash.  But as most first time home buyers have limited funds, you are also allowed with a USDA loan to roll the closing costs into the loan with "seller paid closing costs." 


You can also pay them by taking a slightly higher interest rate. Under these two options, you are still paying for the closing costs, but you are essentially paying over time versus cash out of pocket today. How cool is that?


Most homebuyers using a USDA Rural development program in MN buy their home with less than $1,000 out-of-pocket.


Unacceptable Credit Items for a USDA Loan


If you have any of the following items, you automatically do not qualify for the USDA loan in MN, WI, or SD.  You may qualify for other loans (like an FHA loan), so be sure to contact us for more information on other loan options:

  • Poor Credit (middle credit score BELOW 620)
  • Delinquent Government Debt (back taxes, student loans)
  • More than 2 late mortgage or rent payments in the past 12 months
  • Any credit account turned into a collection account in the past 12 months
  • Unpaid Tax Liens (must be paid off to buy)
  • Foreclosure less than 3-years old
  • Bankruptcy Chapter 7 less than 3-years old
  • Bankruptcy Chapter 13 less than 1-year old
  • You have more than 20% of the purchase price in the bank (this does NOT include retirement accounts like a 401k)

USDA Rural Development Loan Application


Ready?  We can take your loan application by calling our USDA Loan Experts at (651) 552-3681, you can fill out the USDA Loan Online Application, or you can visit us in our USDA Loan Office in St Paul, MN.



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Approved FHA Lender, VA Lender, and USDA Lender in MN, WI, and SD

HUD, The VA, and the USDA requires those who offer their mortgage loans go through a stringent approval process. We are an approved FHA, VA, and USDA mortgage lender. We are not acting on behalf of, or under the direction of the VA or the Federal Government. HUD / FHA and the VA do not lend directly to the public, only through approved lending institutions like Cambria Mortgage.