What is a USDA loan and do I qualify in Wisconsin?
Rob Miller explains USDA loans in Wisconsin — who qualifies, which areas are eligible, income limits, and why this zero-down loan is underused by Wisconsin buyers.
Rob Miller, Branch Manager at MadCity Home Loans, explains the most underused zero-down loan in Wisconsin.
What is a USDA loan and do I qualify in Wisconsin?
A USDA loan (officially the USDA Rural Development Guaranteed Loan Program) offers 100% financing with zero down payment for eligible buyers in designated rural and suburban areas. Wisconsin is one of the best states in the country to use this program.
Which Areas in Wisconsin Are USDA Eligible?
More areas than most people think. In the greater Madison area, many suburbs and surrounding communities qualify — including Waunakee, DeForest, Cambridge, Stoughton, Mount Horeb, Verona (some areas), and much of rural Dane County. The city of Madison itself does not qualify, but areas just outside the city often do.
The easiest way to check: give us an address and we'll confirm eligibility in under a minute.
Income Limits
USDA has household income limits — you can't earn too much to qualify. For most Wisconsin counties in 2026, the standard limit is approximately $110,650 for a 1–4 person household and higher for larger households. These limits adjust annually.
Other Key Requirements
- 640+ credit score for automated underwriting (lower scores may qualify with manual underwriting)
- Property must be in an eligible rural area (no farms or income-producing agricultural properties)
- Must be a primary residence — no investment properties or vacation homes
- Stable income for at least 2 years
The Cost Comparison
USDA has no traditional PMI but does charge a 1% upfront guarantee fee (can be rolled into the loan) and a 0.35% annual fee. Compared to FHA's 1.75% upfront MIP and 0.55% annual MIP, USDA is significantly cheaper for eligible buyers.
Related Guide: See all zero-down options side by side in our Wisconsin Down Payment Assistance Guide.