What Is a USDA Loan?

USDA Loans

United States Department of Agriculture Loans For Buying in Designated Rural Areas

The United States Department of Agriculture (USDA) is the department of the United States government that manages various programs related to food, agriculture, natural resources, rural development, and nutrition. The USDA tries to expand economic opportunity in rural areas, make sure Americans are properly fed, and conserve natural resources. President Abraham Lincoln founded the USDA in 1862, at a time when about 50% of Americans lived on farms.

One of the USDA’s main tasks is in the area of rural development, especially rural housing. The USDA provides financial assistance for purchasing and refinancing rural homes through the Farmers Home Administration. It provides direct loans to very-low-income borrowers who want to purchase a rural home, guaranteed loans to moderate-income homebuyers, and loans and grants for rural home improvements and repairs.

The Farmers Home Administration provides credit and technical assistance to rural families and communities through four major programs: a housing program, utility program, business program, and community development program. The agency has about 1,900 county and district loans offices nationwide.

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