USDA Loans

USDA loans are a type of home loan offered by the United States Department of Agriculture (USDA) to help low- and moderate-income individuals and families purchase homes in rural areas. These loans are also known as "Section 502" loans, and are designed to promote home ownership in rural communities by making it easier for people to afford a home in these areas. The USDA provides a guarantee on these loans, which means that if the borrower defaults on the loan, the USDA will pay the lender a portion of the unpaid balance. This makes it easier for lenders to offer these loans with more favorable terms and interest rates. To be eligible for a USDA loan, the home must be located in a rural area, and the borrower's income must be within certain limits.