USDA financing, also known as an RD loan, is a type of mortgage loan that is guaranteed by the U.S. Department of Agriculture (USDA). The USDA provides this type of financing to help low- and moderate-income families buy homes in rural and suburban areas, as defined by the USDA.

USDA loans are unique in that they offer 100% financing, meaning that the borrower does not need to make a down payment. Additionally, USDA loans may have lower income limits and credit score requirements than other types of mortgage loans, making them a good option for borrowers who may not otherwise qualify for a conventional mortgage.

USDA loans come with certain requirements, such as income limits, property location restrictions, and property type restrictions. RD loans have a life of loan monthly MI premium and an upfront funding fee, similar to but less than FHA financing.

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