What Is a USDA Loan?
The USDA Single Family Housing Guaranteed Loan Program helps approved lenders provide financing to eligible low- and moderate-income households purchasing adequate primary residences in qualified rural areas.
Qualified applicants may be able to receive 100% financing, which means the program does not require a down payment. Eligibility still depends on the household, property, lender underwriting, and current USDA rules.
Income and Location Eligibility
USDA evaluates household income, not only the income of borrowers listed on the loan. Program limits vary by location and household size. The property address must also fall within an eligible area shown by USDA’s current eligibility system.
The home must generally be the borrower’s primary residence. Eligible property types can include certain detached, attached, condominium, modular, and manufactured homes when all program requirements are satisfied.
Fees and Qualification
Guaranteed USDA loans may include an upfront guarantee fee and an annual fee. Approved lenders establish the interest rate and complete the credit, income, asset, and property review.
Because income and location rules are central to this program, confirming both early can prevent delays before a buyer becomes deeply invested in a particular property.