USDA Mortgages
Everything You Need to Know About USDA Mortgages
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 |