USDA Home Loans in North Carolina and South Carolina
A USDA home loan lets eligible buyers in North Carolina and South Carolina purchase a home with no down payment. The home must be in a USDA-eligible area, your household income must be within the limit for your county, and you must qualify for the mortgage. You don't have to be a first-time buyer, and there's no maximum purchase price. Many suburban and small-town areas around Charlotte qualify, not just farmland.
I'm Paul Mattos, a mortgage broker with Refine Mortgage, licensed in North Carolina and South Carolina. Send me the address you're considering, and I'll check the location and compare USDA with FHA and conventional before you make an offer.
USDA Loan Requirements in NC and SC at a Glance
Down payment: none required. Financing can be up to 100% of the appraised value.
Location: the property must be in a USDA-eligible area. Check the exact address on USDA's map.
Income: total household income generally must be within 115% of the area median income for your county and household size.
Credit: USDA has no set minimum score. Many lenders look for about 640 for automated approval, and lower scores may be possible with manual underwriting.
Debt-to-income: generally 29% for housing and 41% total. Since November 2025, USDA allows up to 32% and 44% for borrowers with a 680+ score and a compensating factor.
Fees: a 1% upfront guarantee fee, which can be financed, plus a 0.35% annual fee paid monthly.
Seller help: sellers can contribute up to 6% of the price toward closing costs.
Occupancy: must be your primary residence, generally moved into within 60 days of closing.
Loan type: 30-year fixed rate only.
How does a USDA home loan work?
This page covers the USDA Single Family Housing Guaranteed Loan Program. A USDA-approved lender makes the mortgage, and USDA Rural Development guarantees part of it, which lets lenders offer no-down-payment financing to eligible buyers. The program is for a home you'll live in as your primary residence, not a second home or rental.
Despite the name, you don't need to buy a farm. What matters is whether the specific property address is in an eligible area. Eligible properties can include single-family homes, new construction, townhomes, certain condos, modular homes and some manufactured homes.
The three eligibility checks
1. The Property Must Be in an Eligible Area
Never assume an entire town or ZIP code is eligible. The boundaries can split neighborhoods. Check the address on the USDA property eligibility map before relying on USDA for an offer.
Around Charlotte, eligible areas often include parts of York, Lancaster, Chester, Union, Cabarrus, Gaston, Lincoln and Iredell counties outside the larger town centers. Very little of Mecklenburg County is eligible. See my guide to USDA-eligible areas near Charlotte, then confirm each address on USDA's current map.
2. Your Household Must Meet the Income Limit
USDA's income limit counts the income of everyone in the household, including adults who won't be on the loan. That's different from the income a lender uses to qualify you. USDA allows certain deductions, such as for dependents, childcare and household members age 62 or older.
In many NC and SC counties, the limit for a household of one to four people is around $119,850, with higher limits for larger households and higher-cost areas. Check your county's exact limit on USDA's eligibility site. Tell me who will live in the home and how each person earns income, and I'll review it.
3. You Must Qualify for the Mortgage
The lender reviews credit, income, debts, assets and the housing payment. USDA has no set minimum credit score, but many lenders look for about 640 for an automated approval through USDA's system. Lower scores may be considered with manual underwriting. A bankruptcy, foreclosure or short sale within the last three years, or a late housing payment in the last 12 months, usually requires a closer review.
Does Zero Down Mean Zero Cash to Close?
No. You may still need money for closing costs, prepaid taxes and insurance, an appraisal, inspections and earnest money. USDA does help in three ways:
Seller contributions of up to 6% of the sales price can cover eligible closing costs
Closing costs can be financed into the loan when the appraised value is high enough
Gift funds may help with remaining costs
I'll prepare an estimate for the specific property showing your monthly payment and cash to close. See closing costs for buyers in NC and SC.
What Are USDA Guarantee Fees?
USDA loans have two fees instead of traditional mortgage insurance:
Upfront guarantee fee: 1% of the loan amount, usually financed into the loan
Annual fee: 0.35% of the loan balance, paid monthly as part of your payment
Both annual percentages are lower than FHA's mortgage insurance on a typical low-down-payment loan, though the annual fee generally lasts for the life of the loan. USDA can change these rates, so I'll use the current figures in your estimate.
USDA vs. FHA vs. Conventional
USDA often fits best when:
The home and your household qualify
You want to keep your savings instead of making a down payment
You want a lower annual fee than FHA's mortgage insurance
FHA may fit better when:
The home isn't in a USDA-eligible area
Your household income is above the USDA limit
Your credit needs more flexibility
Conventional may fit better when:
You have stronger credit and can put 3% to 5% or more down
You want mortgage insurance you can remove later
You're buying a second home or above USDA's income limits
I'll compare them side by side for the same home. Learn more about FHA loans and conventional loans.
USDA home loan questions
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No. Repeat buyers can use USDA, but you generally can't own another home that adequately meets your needs at closing.
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No. USDA loans are for a primary residence. The property can't be used mainly to produce income, and acreage must be typical for the area.
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There's no maximum price for USDA guaranteed loans. How much you can buy is limited by your household income limit and how much you qualify to borrow.
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No. Guaranteed loans are made by approved lenders for low- to moderate-income households. Direct loans are made by USDA itself for low- and very-low-income households and have their own income and loan limits.
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USDA has no set minimum. Many lenders look for about 640 for automated approval, and some consider lower scores with manual underwriting.
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Yes. Many areas in surrounding NC and SC counties qualify, but eligibility depends on the exact address. Very little of Mecklenburg County is.
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Yes, if the home is in an eligible area and the builder and property meet USDA requirements.
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Yes. USDA offers streamlined refinance options for existing USDA loans, and you can also refinance into another loan type.
Learn More About USDA Home Loans
Want to explore the details before choosing a loan? These guides explain how USDA financing works and how to check USDA-eligible areas near Charlotte. You can also compare the home loan programs I offer.
Official USDA Resources
USDA Guaranteed Home Loan Program — program overview and requirements.
USDA Property and Income Eligibility — check a property address and review income limits.
The USDA map is a useful first check. Final property and borrower eligibility are determined during the loan review.
Have a property in mind?
Send me the address before you make an offer. I’ll check the USDA location, review your household’s eligibility, and prepare property-specific numbers. If another loan looks like a better fit, we can compare the options together.
Paul Mattos
Mortgage Broker | Refine Mortgage
Carolina Home Financing
NMLS# 2339069 | Licensed in NC and SC
Call or text: 980-221-4959
Email: paulm@refinemortgage.net
Last reviewed: October 2026
USDA income limits, fees, eligible areas and lender requirements can change. This page provides general educational information and is not a commitment to lend. Eligibility depends on the borrower, household, property location, appraisal and underwriting approval. Refine Mortgage is not affiliated with or endorsed by the USDA or any other government agency.