$0 down · no military service required
USDA $0-Down Home Loans in Washington State
Most people hear “USDA” and picture a farm. The reality is closer to a subdivision in Enumclaw with a Safeway two minutes away.
Last reviewed · Program rules and fees are set by USDA and change without notice.
The USDA Rural Development program is the only $0-down mortgage in Washington that doesn't require military service. It covers a surprising amount of the map around Puget Sound, and it's the reason a buyer with no down payment saved can sometimes close on a house sooner than they'd assumed possible.
The catch is that eligibility is decided address by address, not town by town. One side of a street can qualify and the other side can't. That's the part no online article can answer for you — but it takes me about a minute to check, it's free, and it doesn't require an application.
What's covered in this video
Washington USDA income limits, explained
- The limit counts total household income, including adults who are not on the loan.
- King and Snohomish share the highest limit in the state at $179,050 for a household of one to four.
- USDA allows deductions — dependents, childcare — that bring some households under a line they appear to be over.
Summarized by Brad Haines, mortgage loan originator, NMLS #154083, Cascade Premier Mortgage, LLC NMLS #46283 — Renton, Washington.
What a USDA loan actually is
A mortgage made by a regular lender and guaranteed by the U.S. Department of Agriculture. The guarantee is what lets the lender ask for nothing down.
- $0 down payment. Not “low.” Zero, up to the appraised value.
- No military service required. Unlike a VA loan, open to anyone who meets the income and location rules.
- No separate loan limit. USDA doesn't cap the loan amount the way FHA does — your income and the payment you can support set the ceiling.
- Primary residences only. No second homes, no rentals, no investment purchases.
- Cheaper monthly mortgage insurance than FHA in most scenarios.
What it isn't: a grant, a first-time-buyer-only program, or something that requires a perfect credit file.
The corridor: Sedro-Woolley to Enumclaw
The eligible map runs in a band along the foothills, east of the metro core. From the Skagit valley in the north, down Highway 9 and Highway 2 through Snohomish County, and into the Snoqualmie valley and south King County.
These are the towns I work in. Each page covers what to watch for locally — and every one of them is a starting point, not a guarantee, because the map is drawn parcel by parcel.
What's covered in this video
Which Snohomish County towns qualify for zero down
- Every town in the county checked against the current USDA map.
- Eligible towns cluster along the Highway 2 and Highway 9 corridors, east of the metro.
- Town-level eligibility is a starting point; the map is drawn parcel by parcel.
Summarized by Brad Haines, mortgage loan originator, NMLS #154083, Cascade Premier Mortgage, LLC NMLS #46283 — Renton, Washington.
Checking an address is free and takes a minute.
No application, no credit pull, no obligation. Text me an address at (425) 501-3285 or book a call. If it doesn't qualify I'll tell you that too — and we'll look at what does.
The income limit
USDA is meant for low-to-moderate income households, but “moderate” in the Seattle metro is more generous than the phrase suggests.
The limit counts total household income — everyone living in the home who earns, not just the people on the loan. It varies by county and household size, and USDA allows certain deductions (childcare, dependents, and others) that can bring a household under the line even when gross pay looks over it. That's a common reason people rule themselves out incorrectly.
| Area | Household of 1–4 | Household of 5–8 |
|---|---|---|
| King County | $179,050 | $236,350 |
| Snohomish County | $179,050 | $236,350 |
| Skagit, Pierce and other counties | Set separately — ask me and I'll run your county and household size, or check the USDA income eligibility lookup. | |
Income limits are set by USDA and updated periodically. I verify the current figure for your county and household size on every file rather than working from a number on a web page — including mine.
What it costs
USDA has no monthly mortgage insurance in the conventional sense. It has two fees instead, and they are the lowest of any $0-down or low-down program.
| Fee | Amount | How it's paid |
|---|---|---|
| Upfront guarantee fee | 1.00% of the loan amount | Financed into the loan — not cash at closing |
| Annual fee | 0.35% of the loan balance | Divided by 12, added to the monthly payment |
The upfront fee doesn't come out of your pocket. It's rolled into the loan, which is how a genuinely $0-down purchase still works.
The annual fee drops as you pay down. It's calculated on the remaining balance, so it shrinks every year — and at 0.35%, it's well under FHA's typical 0.55%, which is most of why USDA usually wins the monthly-cost comparison.
Fees shown are those in effect for loans obligated in the current USDA fiscal year and are subject to change by USDA. Your actual payment depends on the loan amount, rate, taxes and insurance.
Credit and qualifying
There is no official USDA minimum credit score. Lenders set their own.
- 640 or above is the threshold for USDA's automated underwriting system, which is the smoothest path.
- Below 640, you're not disqualified. The file goes to manual underwriting, where a human reads your whole picture. It takes longer and asks more of you, and it approves people every day.
- No credit score at all? Documented on-time payments over at least 12 consecutive months — rent, utilities, insurance — can build an alternative credit history.
On debt: most USDA lenders look for a total debt-to-income ratio around 41%, with room above that when there are strong compensating factors.
If your credit isn't there yet, that's a plan, not a no. I do free credit coaching to map out what to work on and roughly how long it takes — no judgment, no cost, no application. Start with what score you actually need or how long it takes to fix.
USDA vs FHA vs conventional
| USDA | FHA | Conventional (3%) | |
|---|---|---|---|
| Minimum down | $0 | 3.5% | 3% |
| Location restricted | Yes — eligible addresses only | No | No |
| Income limit | Yes | No | On some programs |
| Upfront fee | 1.00% (financed) | 1.75% (financed) | None |
| Monthly insurance | 0.35%/yr | 0.55%/yr typical | Varies by credit and LTV |
| Insurance ends? | At payoff or refinance | Life of loan on most | Yes, at 20% equity |
| Typical credit floor | 640 automated / lower manual | 580 | 620 |
The honest summary: if the address qualifies and your household is under the income limit, USDA is usually the cheapest way into a house in Washington. If it doesn't qualify, FHA is the usual fallback — and that's a five-minute conversation, not a research project.
How to find out where you stand
- Send me the address. Free, no application. I'll tell you same-day whether it's in an eligible area.
- We check the income side. Household size, county, and the deductions most people don't know about.
- We look at your credit together. Not to judge it — to find the shortest path from where you are to keys in hand.
Seventeen years and several market cycles in, the thing I've learned is that most people who assume they can't buy have never had anyone actually check. The checking is free.
What this looks like for a real household
Worked example
A family of four buying in Sultan on $110,000
- Household: Two working adults, two children, Snohomish County
- Combined income: $110,000 before deductions
- Credit: One borrower at 648, the other at 662
- Savings: About $4,000 — not enough for a 3.5% FHA down payment on this price
- Debt: One car loan, and $3,200 in old medical collections
How this gets read:
- Income limit. $110,000 is well under the $179,050 Snohomish limit for a household of one to four. USDA counts the whole household's income, and allows deductions for dependents that would lower the figure further.
- Credit path. The qualifying score is the lower of the two middle scores — 648 here. That clears 640, which is the threshold for USDA's automated underwriting and the smoothest path.
- The medical collections don't count. USDA excludes medical collections from its $2,000 non-medical test and does not require them paid. On this file they are close to irrelevant, which is not what most people expect.
- The down payment problem disappears. USDA is $0 down and the 1% guarantee fee is financed into the loan, so the $4,000 stays where it is.
- What actually has to be checked. The specific address against the USDA map, the property sub-type (a condominium is a different conversation), and the primary heat source.
Where that lands: A likely path, with the address check as the one real unknown. The constraint people assume will stop them — the collections — is the one that matters least here.
An illustration of how the rules apply, not a pre-approval or a commitment to lend. Your file will differ on details that matter. Program rules are agency-set and change.
USDA loan questions
Do I have to be a first-time buyer to use a USDA loan?
No. USDA has no first-time-buyer requirement. You generally can't own another adequate home you'll keep living in, but a previous purchase doesn't rule you out.
Is USDA only for farms or rural land?
No — and this is the most common misconception. Eligible areas include towns like Sultan, Granite Falls, North Bend and Enumclaw: places with schools, grocery stores and commuter traffic. The map is about population density, not agriculture.
How do I know if a specific address qualifies?
USDA publishes a property eligibility map, and eligibility is set parcel by parcel — one side of a street can qualify while the other doesn't. Send me an address and I'll check it for you at no cost, with no application required.
Whose income counts toward the limit?
The whole household's, including adults who aren't on the loan. USDA also allows deductions for things like dependents and childcare, which is why some households that look over the limit on paper are actually under it.
Can I use a USDA loan with a low credit score?
There's no official USDA minimum. 640 is the threshold for automated approval; below that, the file can still be approved through manual underwriting, which looks at your full picture rather than the score alone.
Does a USDA loan cost more than FHA?
Usually less. USDA's upfront guarantee fee is 1.00% versus FHA's 1.75%, and the annual fee is 0.35% versus FHA's typical 0.55%. Both are set by the agencies and subject to change, and the right comparison depends on your loan amount and credit.
Can I use a USDA loan for a rental or second home?
No. USDA financing is for primary residences only.
How long does a USDA loan take to close?
Similar to other loan types in most cases, with one extra step: after the lender approves, the file goes to USDA for its commitment. That step's timing varies, so build a little cushion into your closing date and tell your agent up front.
The conversation is always free.
No application required to start. Send me an address and I'll tell you the same day whether it's in an eligible area — and if it isn't, I'll tell you that too, and we'll look at what is.