USDA Loans

USDA stands for the U.S. Department of Agriculture, the same organization that inspects your meat. USDA Loans are also known as Rural Development Loans. The USDA uses these to promote growth in areas where they want to encourage rural development. It’s just what it sounds like, they are looking to develop rural areas.

When the USDA identifies specific areas they want to work in, they'll offer a loan for those who are interesting in buying. There are some income restrictions and rules to follow, since it is 100% financing* and no down payment, and it’s a good program for those who qualify. If the sellers will pay your closing cost, you can get in for the cost of your appraisal and your inspections. This means you're talking about getting into a house for around a thousand dollars, or even less.

One of the most recent success stories for this type of program is Spring Hill, TN. Several areas in Spring Hill were USDA eligible which has contributed to it’s outstanding growth. Many families from local plants and facilities in the area were able to purchase their homes with the USDA loan, homes they may not have otherwise been able to get if the program wasn’t available.

Whether you are a young family, newlyweds, single and paying rent for a few years, a middle-aged family, or even if you have credit problems, the USDA loan may be an option for you. And you don’t have to be a farmer to qualify! If you want to live in a rural area and help a local community grow, there are several areas all over TN to choose from. Many are even located near metro areas like Chattanooga and Nashville.

To qualify, the property needs to be in an area with less than 20,000 people and located outside of city limits. There are some loan limits depending on the area. The USDA determines these based on the county. Also, the income of the purchasers needs to be below that county’s limit as well. These are all the details I can help you with.

The USDA loan program helps families that once thought their own home was out of a reach, a possible reality. I’m well-versed in USDA loan requirements. Contact me today to see if you qualify for one of these no down payment, 100% financed* loans.

Manchester Mortgage Broker and Mortgage Lender Michael Daugherty headshot

Michael Daugherty
NMLS ID 1233387

*Loan approval and terms are dependent upon borrower’s credit, documented ability to repay, acceptability of collateral property, and IMS underwriting criteria. USDA and VA loan programs allow 100% financing for those who qualify. USDA loans have location restrictions and income limits. For more information on RD loans, including RD eligibility, please visit VA loans require borrowers to have VA eligibility through Veterans Administration. For more information, please visit

Zachery R.

June 2018

There’s actually a lot I could say about my experience with Michael throughout the process with buying my home. All good of course, I’ll just sum it with Michael met everything head on and no matter what made sure he gave me the best possible outcome in the end of any situation. Top notch, knowledgeable, best in the bizz. Couldn’t thank him enough in the end!

Maxie B.

May 2018

From start to finish Michael worked hard to get us approved. There were a few different obstacles along the way, but every time anything came up, big or small, he knew what to do to get us through it. Michael was as determined as we were to get this done, and he worked extremely hard for us. He isn't a 9 to 5 kind of guy. He worked nights and weekends for us, and he was available 24/7 for anything we needed. He will now be our go to guy for any future purchases. He is GREAT!

Heather R.

April 2018

I greatly appreciated Michael's expertise on all matters. He answered all our questions in a timely fashion and was always available to us if we ever needed anything. The process with this mortgage company was very painless.

Davis C.

December 2017

It was great knowing he was available to talk and walk through anything i needed help on. Any questions small or dumb he would really go through and make sure i understood. Without Michael i wouldnt be a homeowner at the age of 23. Thank you so much for all you did.

Nikita G.

November 2017

Michael made the lending side of this process very easy, from the first conversation in May to closing in November. He was very good at communicating step by step what was expected. I felt very comfortable with him and his capabilities. He remained very professional and honest throughout it all. We appreciate you!