USDA loan

Ask USMI can help explain this term and how it shows up in a mortgage question.

Ask USMI

Definition

A USDA loan is a mortgage made under U.S. Department of Agriculture Rural Development housing programs. It is a government program loan, not a conventional loan and not an FHA or VA loan.

In plain English

USDA Rural Development offers mortgage programs for eligible rural buyers. Private lenders often originate the loans under those rules. Income, location, and other eligibility tests belong to USDA. This page names the program family. It does not state current income limits or down-payment rules.

Technical definition

CFPB’s USDA loan heading describes Rural Housing Service mortgage programs for eligible rural homebuyers. USDA handbook glossary language is PROGRAM_CONTEXT only, not universal PRIMARY.

Why it matters

Product comparisons that say government loan still have to split FHA, VA, and USDA.

Commonly confused with

Sources reviewed

HB-2-3550 Glossary

U.S. Department of Agriculture Rural DevelopmentProgram context

Source reviewedSeptember 4, 2026

Open HB-2-3550 Glossary ↗

Important note

This page does not publish current USDA income or property-location rules.

Cite as

Ask USMI about this term

Explore how this term relates to a loan cost or your next mortgage question.

Ask USMI about USDA loan