What Is a USDA Mortgage?
A USDA mortgage, offered by the U.S. Department of Agriculture, helps people buy homes in designated rural and suburban areas. These loans require no down payment and come with low interest rates, but you’ll need to meet income limits and property location rules. They’re a great fit if you want to own a home outside major cities and qualify under the program’s guidelines.
Who Is It Best For?
USDA loans are best for buyers looking in rural or certain suburban areas who don’t have a large down payment. If you meet the income limits and your home qualifies, this program offers a chance to own with little to no upfront cost.
Who Should Think About It Twice?
If you want to live in a city or earn above the program’s income limits, a USDA loan won’t work for you. Even in eligible areas, the rules can be strict, so double‑check that both you and the property qualify before counting on this option.
Pros and Cons
| Pros | Cons |
|---|---|
| No down payment required | Only for eligible rural/suburban areas |
| Low interest rates | Income limits may exclude some buyers |
| Helps moderate‑income buyers become homeowners | Upfront and annual guarantee fees apply |
The mortgage rates displayed on this site are collected daily from publicly available sources provided by more than 400 lenders. Mortgage-Rates.ai does not receive compensation for listing these rates, and all rates are presented as published by the respective lenders. While every effort is made to ensure accuracy, the information may contain errors or omissions. Mortgage rates are highly dependent on an individual’s financial circumstances, credit profile, loan terms, and other factors. As such, the rates you are quoted directly by a lender may differ materially from the rates displayed here.
Users should contact lenders directly to obtain formal, binding loan offers. If you identify any discrepancies in the data or would like to have your institution’s rates included, please contact us at content@mortgage-rates.ai
All logos, trademarks, and brand names appearing on this website are the property of their respective owners.