USDA loan
A government-backed loan for rural and some suburban areas, from the U.S. Department of Agriculture. 0% down for eligible buyers who meet income limits.
Every term like this one lights up in the step you're on.
Free to set up. No credit card.Part 1 of 4
Why a seller cares
If your home is in an eligible area, a USDA buyer can buy with nothing down. Their loan has property conditions and an extra layer of approval, so the timeline runs a little longer than a conventional one.
Part 2 of 4
A simple example
Your home is outside town in a USDA-eligible area. A buyer offers $240,000 with a USDA loan, zero down, and asks for 45 days to close.
| What is different | What it means for you |
|---|---|
| Zero down payment | The buyer has little cash for an appraisal gap |
| USDA's own review after the lender's | A few extra days, sometimes more |
| Property standards | Like FHA: the house has to be sound and safe |
USDA opens the door to buyers with no savings, at the cost of a slower door.
Part 3 of 4
What people get wrong
That USDA loans are only for farms. They are for homes in eligible areas, which include a lot of ordinary suburbs and small towns.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
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