Looking for a 0% down path to buying a house in Polk County, MO? A USDA Rural Development loan could be the perfect fit. USDA loans are designed for primary residences in eligible “rural” areas and offer competitive rates, flexible credit guidelines, and low monthly costs. These features make them a powerful option for first-time buyers and repeat buyers alike.
In this guide, we’ll break down what counts as rural in Polk County, how to check an address on the official eligibility map, and the income and property rules you’ll need to meet. You’ll also get a plain-English overview of Guaranteed vs. Direct USDA loans, typical fees and monthly payment factors, and a step-by-step path to approval from prequalification to keys in hand.
Buying in or around Bolivar, Fair Play, Humansville, or Morrisville? Partin Real Estate will help you map eligible neighborhoods that match your wish list and connect you with lenders who know USDA inside and out. Let’s see if zero down is on the table for your next move.
USDA Loans 101: The Two Types
USDA offers two main single-family loan programs. Both can be 0% down and used for primary residences in eligible areas, but they’re funded and qualified differently.
Section 502 Guaranteed Loan (most common):
- Who funds it: A private lender (bank, credit union, mortgage company).
- Who backs it: USDA provides a guarantee to the lender—think of it like insurance that makes 0% down possible.
- Who it’s for: Low- to moderate-income households (generally up to 115% of area median income, adjusted for household size).
- Credit & underwriting: Standard mortgage process through an approved lender (credit history, debt-to-income, employment).
- Costs: Typically a 1.0% upfront guarantee fee (usually financed) and a 0.35% annual fee built into the payment.
- Why buyers pick it: Faster than Direct, wider lender availability, flexible for most Polk County buyers.
Section 502 Direct Loan (more specialized):
- Who funds it: USDA lends to you directly.
- Who it’s for: Very low and low-income households (below tighter income caps than the Guaranteed program).
- Payment assistance: May include payment subsidies that temporarily lower the effective interest rate based on income.
- Property & price caps: Stricter limits on purchase price and property “modesty.”
- Timeline: More documentation and a longer approval cycle since you work with USDA, not a private lender.
For most Polk County buyers, you’ll start with the Guaranteed Loan program through a USDA-approved lender. If your household income is on the lower end and you want to see whether Direct could offer payment assistance, your lender and agent can help you compare paths and we’ll map eligible homes that fit either program.
What Counts as Rural in Polk County?
USDA decides what’s rural by their map, not by vibes. An address is eligible if it falls inside the USDA’s officially designated rural area which generally means outside densely developed town centers and suburbs. In Polk County, that often includes most areas outside the core of larger towns and many smaller communities and countryside parcels, but boundaries can cut through neighborhoods street-by-street. Always verify the exact address. Here’s how:
- Go to the USDA Property Eligibility site and choose Single Family Housing (Guaranteed).
- Enter the full street address (no P.O. Boxes), then zoom in until you see the eligibility shading clearly.
- If your pin sits inside the shaded “eligible” area, the location qualifies; if it’s outside, it doesn’t.
- Checking land? Use the nearest parcel address or drop a pin on the map and read the boundary line closely.
USDA updates eligibility after censuses and periodic reviews. If you’re house-hunting near a boundary, screenshot eligibility now and keep your lender looped in. If the map updates mid-search, you’ll want documentation for your specific property.
Income & Household Size: Do You Qualify Financially?
USDA uses household size and adjusted household income to decide if you’re eligible. Then your lender uses your qualifying (repayment) income to underwrite the loan. Those are related but not the same thing.
Eligibility income (USDA rule):
- Household income includes everyone who will live in the home, whether or not they’re on the loan.
- Start with gross annual income for all adult occupants, then subtract allowed USDA deductions, such as:
- $480 for each dependent (under 18 or full-time student/dependent adult)
- $400 if the household head or spouse is 62+
- Verified childcare expenses needed for work/school
- Disability assistance and certain elderly medical expenses (over a threshold)
- Your adjusted household income must be ≤ 115% of Area Median Income (AMI) for Polk County (limits change annually by household size).
To check quickly, open USDA’s Income Eligibility page and pick Missouri as the state and Polk County for the county (if looking for homes in Bolivar, MO). It’ll walk you through entering your qualifying information. If you’re close to the limit, a lender can help verify allowable deductions that may get you under.
Qualifying (repayment) income (lender rule):
- Lenders underwrite using the income of the borrower(s) on the loan only—steady, documentable income they expect to continue (W-2s, pay stubs, award letters, tax returns for self-employed).
- They’ll calculate debt-to-income (DTI). USDA’s benchmark total DTI is often 41%, but approvals above that are possible with strong credit, reserves, or compensating factors (automated underwriting findings control).
- Overtime/bonus/seasonal may count if you have a 2-year history and it’s likely to continue. Self-employed? Expect 2 years of returns (some exceptions apply).
You need to pass both tests to qualify financially for USDA loans—USDA’s household eligibility (≤ 115% AMI after deductions) and the lender’s ability-to-repay (credit, DTI, stable income). If you’re close, Partin Real Estate can connect you with USDA-savvy lenders who’ll prequalify you, confirm deductions, and map eligible properties around your budget.
Property Requirements for USDA Loans
USDA loans are designed for modest, safe, primary residences in eligible areas. If a home checks the boxes below, you’re on the right track.
Location & Occupancy:
- In a USDA-eligible area: The address must fall inside the official USDA Property Eligibility Map.
- Primary residence only: No second homes or short-term rentals.
- Modest use: Typical single-family living—no properties used primarily for a business or farming operation.
Condition & Safety (appraiser will verify):
- Structurally sound & marketable: No major foundation, roof, or framing failures.
- No health/safety hazards: Correct obvious issues (exposed wiring, missing handrails, broken glass, peeling exterior paint on older homes, etc.).
- Weather-tight & secure: Windows/doors function and lock; roof keeps water out.
- Pest concerns addressed: Any wood-destroying insect damage must be repaired.
Systems & Utilities (must be adequate and working):
- Heating (and cooling if present): Reliable, permanently installed system that can maintain safe temperatures.
- Electrical: Properly sized service; no obvious hazards (missing covers, open splices).
- Plumbing: No active leaks; hot/cold water to fixtures; water heater vented/secured.
- Water source: Approved public system or a tested private well that meets local/USDA water quality standards.
- Wastewater: Public sewer or an approved septic system in acceptable working condition.
Site, Access & Outbuildings:
- Legal access: Year-round vehicular access via public street or recorded easement.
- Site is typical for the area: Lot size and improvements are residential in nature (no commercial storefronts).
- Outbuildings are okay if incidental to residential use (shed, small barn/workshop). They can’t be the primary purpose or income-producing focus of the property.
Property Type Nuances:
- Existing homes: Must meet minimum property standards at or before closing (repairs may be required by the lender).
- New construction: Proper permits, inspections, final CO, and warranty documentation.
- Manufactured homes: Allowed when they meet HUD code, are on a permanent foundation, and all title/real-property requirements are satisfied (lender will detail the checklist).
- Condos/PUDs: The project must meet eligibility/insurance requirements; HOA dues must be included in qualifying.
Value & Appraisal:
- Appraised value must support the price. The appraiser confirms condition and market value according to USDA/lender guidelines.
- Repairs called out by the appraiser (safety, soundness, sanitation) typically must be completed before closing.
Typical Costs & Monthly Payment Basics
USDA loans keep cash-to-close low, but there are still a few moving parts in your payment. Here’s what to expect.
Upfront & Recurring Costs:
- Down payment: Often 0% (subject to lender approval and appraisal).
- USDA Guarantee Fees (instead of PMI):
- Upfront Guarantee Fee: 1.00% of the base loan amount (usually financed into the loan).
- Annual Fee: 0.35% of the outstanding principal each year, collected monthly (it goes down as you pay the loan down).
- Closing costs: Typical lender/title/recording fees, prepaid interest, plus escrows for property taxes and homeowners insurance. Seller credits up to 6% of price are commonly allowed and can cover some/all closing costs although lender guidelines apply.
- Escrows: Your monthly payment usually includes property taxes and homeowners insurance (and the USDA annual fee).
What makes up your monthly payment:
- P&I (Principal & Interest): Based on your loan amount and interest rate.
- USDA Annual Fee (monthly portion): 0.35% divided by 12 applied to your current principal balance.
- Property Taxes & Homeowners Insurance (escrowed): Collected monthly, paid by your servicer when due.
- HOA/condo dues (if applicable): Not escrowed in most cases, but still part of your monthly budget.
Considering buying a Polk County home via USDA loan?
USDA loans can open the door to 0% down homeownership in Polk County if the address, household income, and property condition check out. You’ve now got the playbook: confirm rural eligibility on the USDA map, compare Guaranteed vs. Direct programs, verify income limits by household size, and work with a lender to nail down payment, fees, and timing.
Partin Real Estate can help you map eligible neighborhoods around Bolivar, Fair Play, Humansville, and Morrisville and then show you homes that fit both your budget and the program’s rules. Contact us today to get started!
