USDA loans offer zero down payment financing for eligible Augusta County areas surrounding Staunton, providing the lowest mortgage rates available (5.56-6.39%) and $0 down for qualified buyers—but central Staunton's urban density makes it INELIGIBLE for USDA financing. For buyers targeting surrounding areas like Verona, Crimora, Fishersville, or rural Augusta County within commuting distance of Staunton's jobs, arts, and culture, USDA delivers the most powerful combination of $0 down + lowest rates—if your household income stays under $119,850.
This comprehensive guide covers USDA loan eligibility in the greater Staunton area, income requirements, property standards, the critical importance of verifying address eligibility BEFORE house hunting, and when USDA beats FHA, conventional, or VA financing for Shenandoah Valley homebuyers who want Staunton access without urban pricing.
No impact on credit score to check
ALWAYS VERIFY specific address at usda.gov/eligibility BEFORE making offer or falling in love with property.
Buy $250K-$280K home with $0 down
5.56-6.39% (often 0.50-1.0% below FHA/conventional)
Lower rate + low guarantee fee = competitive payments
Verona (10 min), Fishersville (10 min), Crimora (15 min) to downtown Staunton
Larger lots, mountain views, Shenandoah Valley beauty
Income qualifies = no loan amount limit
Check Address: usda.gov/eligibility (address-specific, not city-wide)
Generally Eligible Areas Near Staunton:
| Household Size | Maximum Income |
|---|---|
| 1-4 members | $119,850 |
| 5-8 members | $158,250 |
Staunton Area Reality: $119,850 limit accommodates most first-time buyers and families. Many households working in Staunton (Augusta Health, Mary Baldwin, downtown) fall under limit.
| Loan Type | Rate Range |
|---|---|
| 30-Year USDA | 5.56%-6.39% |
| Average | ~5.95% |
Staunton Area USDA Win: Lowest rates available for eligible buyers.
Instead of mortgage insurance, USDA charges "guarantee fee":
1.0%
of loan amount (can finance)
0.35%
of loan balance
Required: 2 years steady employment
Required: U.S. citizen, U.S. non-citizen national, or qualified alien
| Feature | USDA | FHA |
|---|---|---|
| Down payment | $0 | $9,100 |
| Location | Eligible areas only | Anywhere |
| Income limits | $119,850 | None |
| Monthly fee/MI | $76 | $119 |
| Rate | 5.95% | 6.15% |
| Total payment | $1,942 | $2,017 |
| Cash needed | $5K-$7.5K | $14.1K-$17.1K |
USDA Wins
$0 down, lower fees, eligible + income qualifying
FHA Wins
Works in Staunton city, no income limits
| Feature | USDA | Conventional |
|---|---|---|
| Down payment | $0 | $13,000 |
| Income limits | $119,850 | None |
| Monthly fee/PMI | $76 | $140 |
| Rate | 5.95% | 6.35% |
| Total payment | $1,942 | $2,043 |
| Cash needed | $5K-$7.5K | $18K-$21K |
USDA Wins
$0 down, lower monthly, eligible + income qualifying
Conventional Wins
Income over $119,850, PMI cancels
| Feature | USDA | VA |
|---|---|---|
| Eligibility | Anyone | Military |
| Down payment | $0 | $0 |
| Monthly fee | $76 | $0 |
| Rate | 5.95% | 7.65% |
| Total payment | $1,942 | $2,262 |
USDA Wins
Lower rate/payment (if not military)
VA Wins
If eligible—no monthly fee despite higher rate currently
Critical: Don't fall in love with Staunton city home before checking USDA.
Check: usda.gov/eligibility. Strategy: Focus house hunting in Verona, Crimora, Fishersville, rural Augusta County AFTER confirming eligibility.
Calculate: All household members 18+, All income sources, Gross income before taxes
Under $119,850: Proceed with USDA. Over $119,850: Consider conventional or FHA.
Documents: Last 2 years W-2s/tax returns, 30 days pay stubs, 2 months bank statements, Photo ID, Credit authorization
Staunton Area USDA Lenders: Movement Mortgage (USDA specialist), Guaranteed Rate, Virginia Credit Union, Local banks with USDA programs
Best USDA Markets Near Staunton: Verona ($240K-$300K), Fishersville ($250K-$290K), Crimora ($225K-$275K), Rural Augusta ($200K-$280K)
Verify Each Address: Always confirm USDA eligibility before making offer.
Timeline: USDA loans take 40-50 days (longer than conventional/FHA)
Include: USDA financing contingency, Appraisal contingency, 45-50 day close timeline, Request 2-3% seller concessions
USDA Requirements: Market value, Safe/sanitary, No health/safety hazards, Functional utilities
Staunton Area: Most Verona, Fishersville, Crimora homes pass without issues.
Two Approvals: 1. Lender approval (automated), 2. USDA approval (manual review)
USDA Review Adds Time: Why USDA takes 40-50 days vs 30-40 for others.
Total Timeline: 40-50 days offer to closing
Cash Needed: $5,000-$7,500 (closing costs only, $0 down)
Typical: $5,000-$8,000
Can Finance: USDA allows rolling costs into loan if appraisal supports
Seller Concessions: Up to 6% ($15,600 on $260K)
Staunton Area Strategy: Request 3-4% concessions, reducing cash to $2,000-$4,000.
Falling in love with Staunton city home (NOT eligible). Always verify address.
Some denser areas don't qualify. Check specific address.
$119,850 includes ALL household income (spouse, adult children, etc.). Calculate carefully.
USDA takes 40-50 days. Plan accordingly, communicate with sellers.
USDA $0 down is great, but also consider: location restrictions, income limits, timeline. Not always best option.
While Staunton city itself is NOT USDA eligible, surrounding Augusta County areas (Verona 10 min, Fishersville 10 min, Crimora 15 min) offer USDA financing with $0 down + lowest rates (5.56-6.39%) for buyers earning under $119,850. For households working in Staunton but seeking larger lots, mountain views, and Shenandoah Valley character at $225K-$280K price points, USDA delivers unbeatable value—combining zero down payment, competitive monthly costs ($1,845-$2,032 on typical homes), and rural beauty while maintaining easy access to Staunton's jobs, arts, culture, and historic downtown.
NO. Central Staunton is NOT USDA eligible. Only surrounding Augusta County areas like Verona, Fishersville, and Crimora qualify.
Unlikely to qualify ($150 over). Some strategies exist but difficult. Consider conventional or FHA instead.
40-50 days from offer to closing (longer than FHA 30-40 days due to USDA approval layer).
USDA requires existing home. Land + construction needs USDA construction loan (rare, complex).
Minimum 640, recommended 660+ for smooth approval and best rates.
USDA designation based on population density, not perception. Both have strong USDA eligibility despite being suburban. Always verify specific address.
YES! This is perfect USDA strategy. Work Augusta Health, Mary Baldwin, downtown Staunton, live in Verona/Fishersville with USDA $0 down.
Get matched with USDA lenders who understand eligible Augusta County markets. Compare rates, get pre-approved, and shop with confidence in Verona, Fishersville, and Crimora.
No impact on credit score to check
Last updated: November 26, 2025
About Staunton, VA: Staunton is an independent city in the Shenandoah Valley with a population of approximately 25,000. The median home price as of November 2025 is $276,000-$278,000. While Staunton city itself is NOT USDA eligible, surrounding Augusta County areas (Verona, Fishersville, Crimora) offer USDA financing for eligible buyers earning under $119,850. Major employers include Mary Baldwin University, Augusta Health, and a diverse downtown economy.
Disclaimer: This guide provides general USDA loan information for eligible areas surrounding Staunton, Virginia as of November 2025. USDA loan rates, programs, and requirements change frequently. Always verify specific property address eligibility at usda.gov/eligibility BEFORE house hunting. This website generates leads for mortgage lenders and receives compensation for referrals. Always verify current rates, terms, and eligibility with licensed USDA lenders. Compare offers from multiple lenders before choosing. Consult with mortgage professionals and financial advisors before making home financing decisions.