USDA Loan
A USDA loan is a mortgage backed by the U.S. Department of Agriculture’s Rural Housing Service for low- to moderate-income buyers in eligible rural areas. The guaranteed program lets approved lenders finance a home with no down payment.
Ralo does not offer USDA loans. This page explains how the program works so you can compare it with the loans Ralo does broker.
USDA loans by the numbers
| What | Figure | Source |
|---|---|---|
| Who the program serves | Low- to moderate-income rural residents | CFPB |
| How the two programs differ | The Rural Housing Service lends directly, and guarantees loans made by approved lenders | CFPB |
| Eligibility lookup for an address and income | USDA publishes property and income eligibility tools | USDA Rural Development |
Last reviewed 2026-10-05
Key Features
- ✓No down payment in the guaranteed program
- ✓For homes in areas the USDA designates as eligible
- ✓Household income limits apply
- ✓Guaranteed loans come from approved private lenders; direct loans come from the USDA
- ✓Primary residences only
Who Is a USDA Loan a Good Fit For?
- Buyers in eligible rural and some suburban areas
- Households within the program’s income limit
- Buyers without savings for a down payment
- Borrowers who do not qualify for a VA loan
Requirements
Credit Score
Set by each approved lender.
Down Payment
None required in the guaranteed program.
Debt-to-Income
Reviewed by the lender under USDA underwriting.
Pros and Cons
Advantages
- +No down payment
- +Open to buyers who are not first-time buyers
- +A direct-loan option for lower-income households
Considerations
- -The property must be in an eligible area
- -Household income cannot exceed the program limit
- -Guarantee fees apply
- -Processing can take longer because the USDA reviews the file
The Questions Everyone Asks
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Comparing against a loan Ralo does offer?
Ralo does not offer USDA loans. If a conventional or FHA loan is also on your list, see the rate, points and fees side by side.
See Ralo's Loan Types