# What is a USDA loan?

By Christie Latham (@christielatham) · Published 2026-07-16

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A USDA loan is a zero-down-payment mortgage backed by the U.S. Department of Agriculture, specifically designed to help low-to-moderate-income families buy homes in suburban and rural areas.

Unlike traditional loans that require a 3% to 20% down payment, the USDA program allows you to finance 100% **of the home's purchase price**. Because the government guarantees a portion of the loan, lenders can offer lower interest rates and more flexible credit requirements than you might find with conventional financing. Let's talk about qualifying for a USDA home purchase.