Short answer: Very likely, yes. Highland County is rural under USDA's rules, and its largest town, Hillsboro, has about 6,500 residents, far below the population sizes USDA treats as non-rural. Eligibility is still decided address by address, and your household income has to fall under USDA's limit. There are also two different USDA home loans, and which one fits depends mostly on your income. The fastest way to know for sure is to type your exact address into USDA's free eligibility map, then talk with a lender.
"Is this house USDA?" is one of the first questions we hear from buyers in Hillsboro and across Highland County, and for good reason. A USDA loan lets an eligible buyer purchase a home with no down payment. Here is how it works locally, in plain language.
There are two kinds of USDA home loans
Both are part of USDA's Section 502 program, and both can mean 100% financing. The big differences are who makes the loan and how much income your household can have.
| USDA Guaranteed | USDA Direct | |
|---|---|---|
| Who makes the loan | A private, USDA-approved lender. USDA backs the loan. | USDA Rural Development itself. You apply through the local USDA office. |
| Who it is for | Low- to moderate-income households, up to 115% of the area's median income | Low- and very-low-income households, at or below 80% of the area's median income |
| How common it is | By far the most common USDA loan | Less common; funding is limited each year |
| Interest rate | Market rate, 30-year fixed | Fixed rate set by USDA; payment assistance can lower the effective rate to as low as 1% |
| Loan term | 30 years | 33 years, or up to 38 years for some very-low-income buyers |
| Fees | 1% upfront guarantee fee and 0.35% annual fee | No guarantee fees, but some payment assistance may have to be repaid when you sell or move out |
| Loan amount | No set maximum; based on income and debts | Capped by a county loan limit; the home must be modest for the area |
| Timeline | Normal lender timeline | Usually longer; plan ahead |
Most of our USDA buyers use the Guaranteed loan. The Direct loan is a great fit for some lower-income households, but it moves slower and has more rules, so it helps to know early which one you are aiming for.
How to check a specific address in two minutes
Both programs use the same eligibility map, so one check covers both.
- Go to the USDA Income and Property Eligibility site.
- Choose Single Family Housing Guaranteed (or Direct), then Property Eligibility.
- Type in the full street address and accept the terms. The map tells you whether that address is in an eligible area.
- While you are there, the Income Eligibility tool lets you estimate whether your household qualifies for either program.
If you are looking at a home on our site, send us the address and we will check it for you.
2026 USDA income limits for our area
USDA updated its income limits on July 13, 2026.
Guaranteed loan: for most Southern Ohio counties, the standard limit is:
- Households of 1 to 4 people: $122,800
- Households of 5 to 8 people: $162,100
Direct loan: the limits are much lower. For most of our area, the low-income limit starts at about $64,900 for households of 1 to 4 people, and it rises with household size. Very-low-income limits are lower still.
Two details catch people off guard. First, the limits count the income of every adult in the household, not just the people on the loan. Second, certain allowances, such as childcare costs and a deduction for each child, can be subtracted, so your "adjusted" income may be lower than your paycheck suggests. Always confirm your county's exact figures with the USDA tool, your lender, or the USDA office, because limits are set county by county.
Local facts national websites will not tell you
- The USDA office is right here in Hillsboro. The USDA Rural Development Hillsboro Area Office at 514 Harry Sauner Road (937-393-1921) handles Direct loan applications for Highland County and many surrounding counties, including Adams, Brown, Clinton, Fayette, Pike and Ross.
- Our prices fit the program well. Homes in the Hillsboro 45133 zip code, including the surrounding townships, sold for an average of $285,347 over the last 12 months, according to our October 2026 Hillsboro market report.
- Wells and septic systems are common outside town. Many homes in the townships around Hillsboro use a private well and septic system. USDA requires the home to have safe water and working waste disposal, so plan on a water test and possibly a septic check before closing. We cover water and sewer in more detail in Living in Hillsboro, Ohio: What Buyers Should Know.
- Acreage can work, a working farm cannot. A USDA loan can finance a home on some land, but the property cannot be used mainly to earn income. Barns and outbuildings are fine; a commercial farming operation is not. If you are looking at land in Highland County, ask us before you fall in love with a parcel.
What a USDA Guaranteed loan costs
- Down payment: none required.
- Upfront guarantee fee: 1% of the loan amount, which can usually be added to the loan.
- Annual fee: 0.35% of the loan balance, paid monthly as part of your payment. It works much like mortgage insurance on other loans.
- Home use: it must be your primary residence, not a rental or vacation home. The same is true for the Direct loan.
Questions Highland County buyers ask us most
Which USDA loan is right for me?
It mostly comes down to income. If your household income is under the Direct loan limit, ask the USDA office about Direct first, since payment assistance can make the monthly payment much lower. If your income is above that, or you need to move on a normal timeline, the Guaranteed loan through a lender is usually the way to go. Many buyers check both.
Do I have to be a first-time buyer?
No. You do not need to be a first-time buyer for either program, but you generally cannot already own a home that meets your needs nearby. The Direct program does give priority to first-time buyers.
Is USDA only for farms?
No. It is a home loan for houses in rural areas, which includes most homes in town in Hillsboro, Greenfield, Leesburg and Lynchburg, as well as country homes.
Does my spouse's or adult child's income count?
For the income limit, yes, income from all adults in the home counts, even if they are not on the loan.
Can the seller help with closing costs?
Often, yes, if it is negotiated in the offer. We once helped a buyer who needed $7,500 for closing costs when the seller would not simply pay them. We restructured the offer so the costs were built into the purchase price. The buyer got the help with only a small change to the monthly payment, and the seller still hit the target price.
Where to apply
For a Guaranteed loan, start with a USDA-approved lender. We regularly work with Trey Budke of USA Mortgage, who can tell you quickly whether you pre-qualify or whether another loan fits better. You are always free to use any lender you choose.
For a Direct loan, contact the USDA Rural Development Hillsboro Area Office, 514 Harry Sauner Road, Hillsboro, 937-393-1921. Applications are accepted year-round, but funding is limited, so reach out before you start house hunting.
Your next step
Start with the homes themselves. Search current Highland County listings, then send us any address you want checked for USDA eligibility.
Search Highland County Homes Ask Us About an Address
Call or text Bryan Vance at 937-776-3405 or Rene Vance at 937-205-6513. Vance Team Realtors, 108 Trimble Place Suite A, Hillsboro, Ohio 45133, serving Highland County and Southern Ohio since 2015.
Sources, checked October 21, 2026: USDA Rural Development Single Family Housing Guaranteed and Direct Loan Programs (income limits effective July 13, 2026; FY 2026 guaranteed fees of 1% upfront and 0.35% annual); USDA Rural Development Ohio contacts (Hillsboro Area Office); USDA Income and Property Eligibility site; Vance Team Realtors Hillsboro 45133 market report, October 2026 (last 12 months of MLS sales). Program rules, limits and rates change; confirm current terms with your lender or the USDA office. This post is general information, not a loan approval.