100% Financing for Homes in Rural, Small Town, and Suburban Areas

If you're planning to buy a home in one of Colorado’s USDA-eligible areas, Colorado USDA rural housing loans could be your ideal mortgage solution. Backed by the U.S. Department of Agriculture, this loan program helps low-to-moderate income buyers become homeowners with no down payment required.

From Parker and Elizabeth to Castle Rock and beyond, USDA rural housing loans offer affordable financing in many of Colorado’s fast-growing communities just outside the Denver metro area.

Check out the most common USDA Home Loan FAQs here.

What Is a USDA Rural Housing Loan?

Colorado USDA rural housing loans are government-backed mortgages designed for buyers purchasing homes in qualified rural and suburban areas. With 100% financing, reduced mortgage insurance, and competitive rates, it’s a smart choice for first-time buyers and families on a budget.

Benefits of Colorado USDA Rural Housing Loans

  • Zero down payment required – Finance up to 100% of the purchase price.
  • Lower monthly payments – USDA loans feature reduced interest rates and low annual mortgage insurance (only 0.35%).
  • Flexible credit standards – A minimum score of 620* typically applies.

Who Qualifies for USDA Rural Housing Loans?

To qualify for a Colorado USDA rural housing loan, you must meet the following:

  • Buy a home in a USDA-eligible area
    Search eligible locations using the USDA Property Eligibility Tool.
  • Occupy the home as your primary residence
    No second homes or investment properties allowed.
  • Meet income eligibility limits
    Limits vary by county and household size. Deductions for dependents and childcare may reduce your qualifying income.
  • Home type matters
    Modular homes are allowed. Manufactured homes must be newly built and never lived in.

Why Choice Mortgage Group?

Not all lenders are USDA-approved or offer in-house processing for these loans. At Choice Mortgage Group, we handle USDA underwriting and funding locally, which means faster approvals and on-time closings, critical in today’s competitive market.

We’ve helped hundreds of buyers in Colorado leverage USDA rural housing loans to achieve affordable homeownership.

Have questions about Colorado USDA rural housing loans?
Call or text 303-670-0137, email rbaxter@choicemortgage.com, or request a rate quote. We’re here to help you buy your home with zero down.

USDA Home Loan FAQs

A USDA loan is a government-backed mortgage program designed to help low to moderate income individuals purchase homes in eligible rural and suburban areas. These loans are popular for their zero down payment option and competitive interest rates.

No, USDA loans are unique in that they typically require no down payment, making them a very attractive option for eligible borrowers. This means qualified buyers can finance 100% of the home's purchase price.

USDA loans have specific income limits that vary by county and household size in Colorado. These limits are set to ensure the program serves low to moderate income individuals and families in qualifying rural areas.

USDA loans are specifically for homes located in designated rural and some suburban areas of Colorado, as defined by the USDA Rural Development program. Most major metropolitan areas are excluded, but many surrounding communities still qualify.

While the USDA does not have a strict minimum credit score, lenders typically look for a score of 640 or higher for streamlined processing. Borrowers with lower scores may still be approved but might require more extensive underwriting.

Yes, USDA loans require both an upfront guarantee fee and an annual guarantee fee, which function similarly to mortgage insurance premiums. These fees help secure the loan and are typically lower than those for FHA loans.