Short answer

A USDA guaranteed loan lets you buy with $0 down in eligible areas outside Jacksonville’s urban core, including much of western Nassau, Baker, Bradford, rural Clay and parts of St. Johns County. Your household income has to be at or below USDA’s limit for the county (115% of area median), the home must be your primary residence, and there’s a 1% upfront guarantee fee and a 0.35% annual fee. Sellers can help with closing costs.

Last updated October 2026. USDA is one of the most underused loans in Northeast Florida. A lot of buyers assume it’s only for farms. It isn’t. It’s for homes in eligible areas, and plenty of subdivisions within a commute of Jacksonville qualify. This is our hub for everything USDA around Jacksonville.

Where USDA Works Around Jacksonville

County Typically eligible areas (check the exact address)
Nassau Callahan, Hilliard, Bryceville and much of western Nassau; parts of Yulee may qualify while Fernandina Beach generally does not.
Baker Most of the county, including Macclenny, Glen St. Mary and Sanderson. See Home loans in Macclenny, Baker County, Starke and Bradford County.
Bradford Most of the county, including Starke, Lawtey, Hampton and Brooker.
Clay Rural areas around Middleburg, Keystone Heights, Penney Farms and parts of Green Cove Springs. Orange Park and Fleming Island generally do not qualify.
St. Johns Rural western and southern areas such as Hastings and Elkton. Most of the northern suburbs do not qualify.
Duval Very little; Jacksonville proper is generally not eligible.

USDA updates its eligibility map, so we always check the specific address before you write an offer.

Who Qualifies

  • Household income: at or below USDA’s limit for the county, generally 115% of area median. USDA counts the income of every adult in the household, not just the borrowers, with allowable deductions for children, childcare and elderly or disabled household members.
  • Primary residence: no investment property or second homes.
  • Credit: USDA has no official minimum score, but most lenders want around 640 for automated approval. Manual underwriting can work for some lower scores. See USDA manual underwriting in rural Florida.
  • Debt ratios: USDA’s guideline is about 29% housing and 41% total debt, with higher ratios possible through automated approval and strong compensating factors.
  • Not owning adequate housing: you generally can’t already own a home nearby that meets your needs.

USDA Costs in 2026

Item How it works
Down payment $0 required
Upfront guarantee fee 1% of the loan, usually financed into the loan
Annual fee 0.35% of the balance per year, paid monthly, for the life of the loan
Seller credits Sellers can contribute up to 6% of the price toward closing costs and prepaids
Closing costs above the price If the appraisal comes in above the price, some closing costs can be financed up to the appraised value

Guidelines and fees may change; lender overlays may be stricter.

USDA vs. FHA vs. VA

USDA FHA VA
Down payment $0 3.5% $0
Where Eligible rural and suburban areas Anywhere Anywhere
Income limit Yes No No
Ongoing fee 0.35% annual Monthly MIP None
Who Any eligible household Any eligible borrower Eligible veterans, service members, surviving spouses

If you’re a veteran, VA usually beats USDA. If your income is above the USDA limit, FHA or a 3% down conventional loan is the next stop. See FHA loans in Jacksonville and VA loans in Jacksonville.

Manufactured Homes, Acreage and New Construction

  • Manufactured homes: USDA can finance eligible manufactured homes, including certain resales. See USDA loans for manufactured homes in Florida.
  • Acreage: typical rural lot sizes are fine; the land can’t be income-producing or the main source of value.
  • New construction: builders in eligible areas often accept USDA. Ask about the builder’s timeline before you lock.
  • Wells and septic: water tests and system checks are common.

Stack USDA With Down Payment Assistance

USDA already covers the down payment, but closing costs and prepaids still add up. Seller credits, gift funds and Florida Housing assistance (including Hometown Heroes when funded) can help cover them for eligible buyers. See Florida Housing down payment assistance compared and Down payment gift funds.

Why Work With North Star

  • Independent broker since 2000. North Star Mortgage Network has served Florida borrowers for 25+ years. You can verify our license on NMLS Consumer Access (company NMLS #356789).
  • Many wholesale lenders, one application. We compare options side by side instead of selling you one bank’s menu.
  • Free second look at your Loan Estimate. Already have an offer from another lender? Send it over. We’ll review it at no cost and tell you plainly whether we can improve it. As a broker with lower overhead, we often can. If we can’t, we’ll tell you that too.
  • Built to close on time. We regularly close purchase loans in 30 days or less. Timing depends on the appraisal, title, underwriting and how quickly documents come in, so we can’t guarantee a date, but you’ll get a realistic timeline up front and updates along the way.
  • Recognized by our industry. 2025 NAMB Mortgage Broker of the Year and 2026 NAMB Influencer of the Year, with hundreds of 5-star Google reviews.
  • You talk to Nathan. Not a call center, and not a different person every week.

Related Guides

Common Questions

Is Jacksonville eligible for USDA loans?

Jacksonville proper is generally not eligible. Many nearby areas are, including much of western Nassau, Baker and Bradford counties and rural parts of Clay and St. Johns. We check the specific address.

What is the USDA income limit in Northeast Florida?

USDA’s guaranteed loan limit is generally 115% of area median income and varies by county and household size. USDA counts all adult household income. We’ll calculate it with you before you shop.

Does USDA have mortgage insurance?

USDA has a 1% upfront guarantee fee, usually financed, and a 0.35% annual fee paid monthly. That’s typically lower than FHA’s monthly mortgage insurance.

Can the seller pay my closing costs on a USDA loan?

Yes. Sellers can contribute up to 6% of the price toward closing costs and prepaids, subject to program guidelines.

What credit score do I need for USDA?

Most lenders look for about 640 for automated approval. Lower scores may work with manual underwriting and strong compensating factors. Lender overlays may be stricter.

Can I use USDA for a manufactured home?

Yes, for eligible manufactured homes on a permanent foundation that meet USDA’s age and HUD rules. Guidelines may change.

Talk to North Star

Call or text 904-880-6741, request a quote, or apply online. Already have a Loan Estimate? Email it to nathan@nsmn.com for a free second look.

North Star Mortgage Network, Inc. | Company NMLS #356789 | Nathan Young NMLS #325206 | 12058 San Jose Blvd, Suite 404, Jacksonville, FL 32223 | 904-880-6741 | nathan@nsmn.com | Equal Housing Opportunity. USDA Rural Development guaranteed loans are subject to USDA property and household income eligibility; North Star is not acting on behalf of or at the direction of USDA. USDA, FHA and VA guidelines may change; lender overlays may be stricter. Rates, payments and terms are estimates based on the information provided and are subject to change. All loans subject to credit approval. Available for qualified borrowers; program guidelines apply. This is not a commitment to lend.

Posted in blog, Mortgage Types