What Is a USDA Loan?
A USDA loan is a US mortgage backed by the Department of Agriculture for buying homes in eligible rural and some suburban areas. The guaranteed loan program allows eligible low- to moderate-income buyers to purchase with no down payment, subject to income limits and property location rules.
Fees
Instead of private mortgage insurance, USDA loans charge an upfront guarantee fee and an annual fee.
Eligibility
Both the property’s location and the household’s income must meet program limits, which vary by area.
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🔗 Related Terms
More Home Buying Terms
- Adjustable-Rate Mortgage (ARM)
- Appraisal Gap
- Assessed Value
- Bridge Loan
- Cash-Out Refinance
- Closing Costs
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Last updated: September 29, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.