Most of the metro is out, and we’d rather say so now
USDA guaranteed loans are for areas the agency’s map calls rural, and around Philadelphia the map is unforgiving. Philadelphia County is entirely out. Delaware County has nothing we could find. The inner ring of Bucks, Montgomery, and Chester is out too: Lower Bucks, King of Prussia, Pottstown borough, West Chester, Exton, Downingtown, Phoenixville, Malvern, Paoli, and the whole Route 30 corridor from Berwyn through Coatesville.
What’s left is the outer third of each county. That’s still a lot of houses, and they’re often the ones with a yard, a barn, and a septic tank, so zero down is worth chasing if you’re looking out there anyway.
The eligible corners, county by county
The lists below come from lenders who work these areas, and every address has to be confirmed on USDA’s eligibility map before a lender will take the file.
- Bucks. Roughly north of Warrington on Route 611, north of Richboro on Route 232, and north of Yardley on I-95. Quakertown, Perkasie, Sellersville, Hilltown, East and West Rockhill, Chalfont, parts of the area around Doylestown, and New Hope. See Bucks County.
- Montgomery. The line runs from the Schuylkill near Eagleville through Kulpsville and Hatfield to the Bucks border, and everything north and west of it qualifies. Harleysville, Souderton, Telford, Franconia, Lower and Upper Salford, Skippack, Schwenksville, Collegeville, Trappe, Limerick, Royersford, Pennsburg, Green Lane, Red Hill, East Greenville, and Gilbertsville. See Montgomery County.
- Chester. The southern and western parts of the county. Kennett Square, Oxford, West Grove, Avondale, Parkesburg, Atglen, Honey Brook, Elverson, Chester Springs, Cochranville, Landenberg, and Spring City. See Chester County.
The map draws its lines down roads and creek beds, so a township can be half in and half out. Perkiomen Creek doesn’t care about your commute.
The income cap
USDA caps household income at 115% of the area median, and it counts income from every adult who’ll live in the house, including ones who aren’t on the loan. A working adult child or a parent moving in with you goes on the worksheet.
For 2026, effective July 13, the standard Pennsylvania limits are $122,800 for a household of one to four and $162,100 for five to eight. Bucks, Montgomery, and Chester fall in the Philadelphia metro area, which carries a higher limit. We couldn’t tie the 2026 metro figure to the official table as of this writing, so ask the lender or run the household through USDA’s income tool before you count on it. The lender does this on the first call anyway.
The fees, in dollars
USDA charges a guarantee fee in place of mortgage insurance: 1% of the loan upfront, which can be financed, and 0.35% a year on the outstanding balance, paid monthly for the life of the loan. Both figures have held since 2017.
| Line | $300,000 purchase, zero down |
|---|---|
| Upfront guarantee fee at 1% | $3,000, rolled into the loan |
| Loan amount after financing the fee | $303,000 |
| Annual fee at 0.35%, first year | About $1,060, or roughly $88 a month |
Compare that with FHA’s 1.75% upfront and 0.55% a year on the same house, and the USDA fee structure is the cheaper one by a wide margin. The trade is the geography and the income cap. If you clear both, this is usually the lowest-cost zero-down loan available to a civilian buyer.
Zero down, but the transfer tax is still 2%
Every USDA-eligible town in the three counties sits at Pennsylvania’s standard 2% transfer tax. The suburban deviations, Malvern and Tredyffrin at 2.5% and Coatesville at 3%, all fall inside the ineligible zone, so a USDA buyer never meets them. On a $300,000 house in Perkasie, the customary buyer’s half is $3,000, plus an owner’s title policy of $2,165 at the statewide rate. Seller assist can cover both, and the lender will tell you the cap. The closing costs guide walks through the rest.
What the house has to be
A USDA loan covers a single-family primary residence, and the appraiser applies property standards close to FHA’s. A 1920s farmhouse outside Honey Brook with peeling paint and a tired roof gets the same scrutiny a South Philly rowhome would, so read the appraisal guide even though there isn’t a rowhome in sight. New construction in Limerick and Skippack tends to sail through. Well and septic are normal out here, and the appraiser will want to see them working.
PHFA with a USDA loan
PHFA’s Keystone Government Loan takes a USDA first mortgage with no PHFA income or price limits and no first-time-buyer requirement, and pairs it with the Keystone Advantage second, up to $6,000 at 0% repaid over ten years. On a zero-down purchase that covers the transfer tax and the title policy with room to spare. Borrowers under a 680 score take a homebuyer course. See the PHFA guide.
The USDA map draws its lines down roads. Two houses on the same street outside Doylestown or Collegeville can land on opposite sides of it. Run the exact address before you write the offer.
Start with one call
Give us the address. We’ll check it against the USDA map with you on the phone, then connect you with a lender who does USDA loans in Upper Bucks and southern Chester County. Call us.