USDA home loans, sometimes called rural development loans, are government-insured mortgages that help buyers purchase a home with no down payment. Buyers may finance their closing costs into their loan or receive seller assistance for minimal out-of-pocket costs. USDA mortgages usually have very low fixed-interest rates.

The USDA home loan program was created in 1991 to improve homeownership rates in rural areas, although not all areas covered by the loan are necessarily rural. The program allows for purchases, refinances, renovations and repairs. Programs based on borrower qualification and subject property geographic location.