What is USDA Loan?
A USDA loan is a mortgage backed by the U.S. Department of Agriculture for buyers in eligible rural and some suburban areas who meet income limits. It is one of the few loans that allows 0% down. The trade-off is that the property must be in a designated eligible area and household income must fall under the program’s cap.
Example: A family buying in an eligible rural part of California qualifies under the income limits and finances the purchase with a USDA loan and no down payment.