USDA (United States Department of Agriculture) rural development loans are a type of government-backed home loan designed to help low- and moderate-income families purchase a home in rural areas. These loans offer many benefits to borrowers, including low interest rates and no down payment requirement.

Eligibility for USDA Rural Development Loans

To be eligible for a USDA rural development loan, borrowers must meet certain income and credit requirements and the property must be located in a rural area designated by the USDA. The USDA defines rural areas as areas outside of urban and suburban areas, and many rural communities are eligible for these loans.

To determine your eligibility for a USDA rural development loan, you can use the USDA’s eligibility map tool. This tool allows you to enter the address of the property you are interested in purchasing and determine if the property is located in a rural area eligible for a USDA loan.

Benefits of USDA Rural Development Loans

One of the biggest benefits of USDA rural development loans is that they offer low interest rates. These loans are backed by the government, making them less risky for lenders, which allows for lower interest rates. This can result in lower monthly mortgage payments and overall lower costs for borrowers.

Another benefit of USDA rural development loans is that they do not require a down payment. This means that borrowers can purchase a home without having to save for a down payment, making it easier to become a homeowner.

No Private Mortgage Insurance (PMI)

USDA rural development loans do not require private mortgage insurance (PMI), which is often required by conventional loans if the down payment is less than 20% of the purchase price of the home. This can save borrowers hundreds of dollars each year and make it easier to afford a home.


USDA rural development loans offer many benefits, including low interest rates, no down payment requirement, and no private mortgage insurance requirement. If you are looking to purchase a home in a rural area and meet the eligibility requirements, a USDA rural development loan may be a good option for you. It is important to work with a knowledgeable mortgage lender to find the best solution for your needs.


Linda Benningfield is a professional mobile notary, loan signing agent, and apostille facilitator living in the beautiful Pacific Northwest. Linda is also an independent associate for LegalShield / ID Shield providing affordable protection plans to individuals, families, and businesses.

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