USDA loan
A zero-down mortgage backed by the U.S. Department of Agriculture for eligible rural and suburban buyers who meet income limits.
What does usda loan mean?
Backed by the U.S. Department of Agriculture, a USDA loan offers zero down payment to buyers in eligible rural and many suburban areas who fall under local income limits. In place of a down payment it charges an upfront guarantee fee and a smaller annual fee, both lighter than FHA insurance. For qualifying buyers outside the city, it is one of the few genuine no-money-down options.
Frequently asked
Who qualifies for a USDA loan?
Buyers purchasing a primary home in an eligible rural or suburban area whose household income falls under the local limit — $119,850 for a 1–4 person household in most areas for 2026. Much of the map outside city cores qualifies.
What are the fees on a USDA loan?
In place of a down payment, USDA charges a one-time upfront guarantee fee (financed into the loan) plus a smaller annual fee spread across your payments. Both are lighter than comparable FHA mortgage insurance.
USDA vs FHA — which is better?
USDA wins if you qualify — zero down and lower fees — but it is limited by geography and income. FHA has no location or income limits and works anywhere, at the cost of a 3.5% down payment and heavier insurance.
Put it to use
USDA Loan Calculator
Estimate a USDA loan: 0% down for eligible rural buyers, with its guarantee and annual fees.
FHA Loan Calculator
Estimate an FHA payment including upfront and annual mortgage insurance premiums (MIP).
Down Payment Calculator
Turn a down-payment percentage into dollars and see whether you clear the 20% PMI threshold.
Related terms
All glossary terms