who does usda mortgage loans

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U.S. Department of Agriculture

People also ask


  • What is a USDA home loan?

  • A USDA home loan is a mortgage either made or guaranteed by the United States Department of Agriculture’s Rural Housing Service agency to help households with very low to moderate incomes purchase safe and affordable homes in rural areas.

  • What are the different types of USDA mortgages?

  • The U.S. Department of Agriculture offers two main types of USDA mortgages 鈥?guaranteed loans and direct loans. USDA guaranteed loans are mortgages that are insured by the USDA, meaning if you were to default on the loan, the agency would repay your lender.

  • Are you eligible for a USDA direct loan?

  • These home loans are for borrowers who are unable to qualify for a USDA guaranteed loan and whose income is below 80% of the median household income in their area. To find out if you are eligible for a USDA direct loan, contact your state’s USDA Rural Development Office.

  • What are the qualifications for a USDA guaranteed home loan?

  • There are several qualifications both you and the property you’re hoping to buy will need to meet in order to be eligible for a USDA guaranteed home loan. USDA mortgages are meant for lower-income borrowers, so your household income must be below 115% of the area’s median household income.

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