A USDA mortgage is a home loan program backed by the U.S. Department of Agriculture (USDA) designed to promote homeownership in eligible rural and suburban areas. Officially known as the USDA Rural Development Guaranteed Housing Loan Program, it offers low- and moderate-income homebuyers the opportunity to purchase a home with no down payment, making it one of the most affordable loan options available. In addition to no down payment, USDA loans often feature competitive interest rates and reduced mortgage insurance costs compared to other loan types.

To qualify for a USDA mortgage, the home must be located in an area designated as eligible by the USDA, and the borrower must meet income requirements based on household size and local limits. This loan is ideal for first-time homebuyers or families looking for affordable housing options outside of major metropolitan areas. With flexible credit requirements and accessible terms, USDA loans are a valuable tool for making homeownership attainable in rural communities. Partnering with an experienced lender will help you determine your eligibility and guide you through the application process.