What Is a USDA Loan?
The USDA Rural Development Guaranteed Loan program offers 100% financing (zero down payment) for homes in eligible rural areas. The program is designed to help moderate-income buyers purchase homes in communities that the USDA designates as rural. Despite the name, many suburban areas qualify.
Lane County Eligible Areas
Much of Lane County outside the Eugene-Springfield urban growth boundary is USDA-eligible. This includes Veneta, Elmira, Cottage Grove, Creswell, Junction City, Oakridge, and most unincorporated areas. You can check any address on the USDA eligibility map at rd.usda.gov.
Income Limits
USDA loans have income limits that vary by county and household size. For Lane County in 2026, the limit for a 1-4 person household is approximately $110,100. The limit for a 5-8 person household is approximately $145,350. These limits are adjusted annually and are higher than many people expect.
Advantages Over FHA
USDA loans have no down payment requirement (FHA requires 3.5%), lower mortgage insurance costs, and often competitive interest rates. The upfront guarantee fee is 1% (versus 1.75% for FHA), and the annual fee is 0.35% (versus 0.55% for FHA). Over a 30-year loan, these savings add up significantly.
Working With the Right Lender
Not all lenders offer USDA loans, and fewer still are experienced with rural properties that require well and septic. Processing times can be longer than conventional loans. I work with lenders who close USDA loans regularly in Lane County and know how to navigate the additional requirements without delays.
