USDA loans in Colorado — zero down for rural buyers.
If your property is eligible and your income qualifies, USDA is one of the strongest loan programs in rural Colorado — zero down, low mortgage insurance, and competitive rates.
Why USDA is underused in rural Colorado
A lot of buyers don't realize USDA covers most of rural Colorado — not just farmland. If you're buying outside the major metros and your household income is under the local cap, USDA is usually the best loan you can get.
- 100% financing — zero down payment required
- Lower mortgage insurance (annual fee) than FHA
- Competitive 30-year fixed rates (often lower than conventional)
- Flexible credit guidelines (640+ recommended)
- Sellers can contribute up to 6% toward closing costs
- Closing costs can be financed if the appraisal supports it
Colorado areas where USDA is widely available
Eligibility is parcel-by-parcel, but these CO counties have substantial USDA-eligible inventory. We'll confirm a specific address before you write an offer.
Delta County
Most of Delta County qualifies — popular for affordable Western Slope primary homes.
Montezuma County (Cortez area)
Nearly all of Montezuma County is USDA-eligible — Southwest CO's most affordable entry point.
Alamosa & San Luis Valley
Most of the San Luis Valley qualifies — extremely affordable price points with zero-down financing.
Outlying Weld County (Greeley outskirts)
Many areas outside Greeley city limits qualify — popular with first-time buyers.
Fremont County (Cañon City outskirts)
Most rural Fremont County is USDA-eligible.
Teller County (Woodland Park surrounds)
Outlying areas of Teller County frequently qualify.
Outlying Gunnison & Montrose Counties
Many rural pockets of Western Slope counties are eligible.
How to check property eligibility
- Send us the property address — we'll run it against the USDA eligibility map.
- We confirm the property is in an eligible area and not flagged as unsuitable.
- We verify household income against the county-specific 115% AMI cap.
- If both check out, we structure the file as USDA — you write the offer with confidence.
Colorado USDA loan FAQs
How do I check if a Colorado property is USDA-eligible?+
USDA maintains an online property eligibility map. Most areas outside CO's major metros qualify — including large portions of the Western Slope, Southern CO, and the San Luis Valley. Send us the address and we'll confirm eligibility within minutes.
What are the USDA income limits in Colorado for 2026?+
USDA caps household income at 115% of the area median income (AMI). Limits vary by county and household size, but for most CO rural counties the limit lands around $112,450–$148,500 for a 1–4 person household. We'll run your county's exact limit during pre-approval.
Is USDA only for first-time buyers?+
No — USDA is available to anyone meeting the income and property eligibility requirements. You can't currently own another adequate home, but USDA doesn't have a first-time buyer requirement.
Can I use USDA on a manufactured home in Colorado?+
Yes — USDA allows manufactured homes that meet HUD requirements and are permanently affixed to a foundation. This is one of the few zero-down options for manufactured housing in rural Colorado.
Are there closing costs on a USDA loan?+
Yes, but you can often finance closing costs into the loan if the appraised value exceeds the purchase price. Sellers can also contribute up to 6% toward closing — meaning many USDA buyers close with very little out of pocket.
How does USDA compare to FHA in rural Colorado?+
If the property is USDA-eligible, USDA usually wins — zero down vs. 3.5% down, lower monthly MI, and often a slightly better rate. FHA is the fallback when the property isn't USDA-eligible or income exceeds the USDA limit.
Check USDA eligibility for your CO property
Send us an address — we'll confirm USDA eligibility and run your income against the county cap.