Lebanon County USDA Loan

What areas of Lebanon County are eligible for the USDA Mortgage Program?

The city limits of Lebanon is the only area of Lebanon County that is not geographically eligible for the USDA Rural Development Loan. Almost immediately outside of the Lebanon city limits the rest of Lebanon County becomes eligible for the No Down Payment USDA Mortgage Program. If you live outside of the immediate Lebanon city limits you are most likely in a USDA eligible area.

The largest towns in Lebanon County, Pennsylvania that are eligible for a USDA loan include Palmyra, Annville Township, Cornwall, Campbelltown, and Myerstown.


Lebanon city limits is the only area of Lebanon County, Pennsylvania that is not eligible for the USDA Rural Development Loan.


To check to see if a specific home in Lebanon County, Pennsylvania is USDA Eligible call 717-745-8380 or email USDA@keystonehomefinance.com

USDA Eligible Areas in Lebanon County, Pennsylvania


Eligible Towns

  • Annville

  • Avon

  • Avon Heights (parts)

  • Buffalo Springs

  • Campbelltown

  • Cleona

  • Cornwall

  • East Hanover

  • Ebenezer (parts)

  • Fontana

  • Fort Indiantown Gap

  • Fredericksburg

  • Greenpoint

  • Hamlin

  • Hebron

  • Heilmandale

  • Jonestown

  • Lickdale

  • McGillstown

  • Midway

  • Mount Gretna

  • Mount Gretna Heights

  • Myerstown

  • Newmanstown

  • North Cornwall

  • Ono

  • Palmyra

  • Pleasant Hill

  • Quentin

  • Reistville

  • Richland

  • Rocherty

  • Rockwood

  • Schaefferstown

  • Timber Hills

  • any obvious rural locations

Eligible Townships

  • Annville Township

  • Bethel Township

  • Cold Spring Township

  • East Hanover Township

  • Heidelberg Township

  • Jackson Township

  • Millcreek Township

  • North Annville Township

  • North Cornwall Township

  • North Lebanon Township

  • North Londonderry Township

  • South Annville Township

  • South Londonderry Township

  • Swatara Township Township

  • Union Township Township

  • West Cornwall Township


Note: This list is an indicator of USDA Eligible Areas for the County but does not necessarily include every possible eligible area. If you do not see your town listed, feel free to contact us to double check. If you are in a rural area and do not see your town listed above, you are in a USDA Eligible Area.

Lebanon County USDA Household Income Limits 

Income table.png

If your Income exceeds the figures listed here, you may still qualify. The USDA allows for several deductions which may allow your Household Income to fit within their Maximum Adjusted Income Guidelines.   

Deductions to reduce your USDA Household Income Calculation

  • $480 for each minor child living in the household

  • $480 for any student living in the household who is not on the mortgage application

  • $400 for each disabled household member who is not on the mortgage application

  • Documented Child Care Expenses for household members under the age of 13

  • Documented Medical/Disability Expenses for household members age 62 or older (this deduction is allowable if the expense exceeds 3% of the household income)