finance
USDA loan
A USDA loan is a mortgage backed by the U.S. Department of Agriculture's Rural Development program to help low- and moderate-income buyers purchase homes in eligible rural and some suburban areas. Many USDA loans allow 100 percent financing with no down payment. Borrowers must meet income limits, and the property must be in an approved area and used as a primary residence. Guarantee fees apply.
- Exam tip
- Compare government loans: USDA and VA can offer no down payment; FHA requires a small minimum down payment. USDA has income and location limits.
- Example
- A family earning within the county's income limit buys a $220,000 home in an eligible rural town with a USDA guaranteed loan and no down payment.
Related terms & state variants
Sources
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Last verified: 2026-10-23