A USDA Loan is a home loan guaranteed by the United States Department of Agriculture (USDA) to provide affordable financing options for properties located in designated small towns and suburbs away from the city. This program helps eligible low- to moderate-income families who are interested in living “outside the city” achieve homeownership by offering a no down payment option. Eligibility is based on the property size, location and condition along with income and other qualifying factors and maximum loan limits vary based on location. The USDA loan is for primary residences only and cannot be used to purchase an investment property.

USDA Loan FAQs

Do only first-time homebuyers qualify for a USDA loan?

No, the USDA loan option is available to both first-time homebuyers and repeat homebuyers.

Can I purchase a property with the USDA loan without a down payment?

Yes! Qualified borrowers can purchase without a down payment.

How do I know if my home is USDA-eligible?

You can learn if your home is located in a USDA designated rural area by visiting the USDA website and entering your address to their property eligibility map.