A USDA home loan is a zero down payment mortgage for eligible rural and suburban homebuyers. USDA loans are issued through the USDA loan program, also known as the USDA Rural Development Guaranteed Housing Loan Program, by the United States Department of Agriculture.
- The home you are buying must be your primary residence. Rental properties, investment properties, and second home purchases are not eligible for the USDA home loan program.
- To be eligible, the home must be located within a USDA-eligible area.
- There are no stated mortgage limits for USDA home loans. Rather, the applicant’s income determines the maximum loan size.
- USDA home loan borrowers will pay very low fees compared to what they would pay for other low down payment loans.