---
title: "USDA loan — What It Means | Ondo RE"
canonical: https://www.ondorealestate.com/glossary/usda-loan/
---

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Mortgage & lending[All terms starting with U](/glossary/#letter-U)

# USDA loan

Also called: rural development loan, usda rural

A government-backed loan for eligible rural and suburban areas that can allow no down payment for qualifying borrowers.

USDA financing is limited by two tests: the property must sit within an eligible area on the published map, and household income must fall under the limit for that county and household size.

Eligible areas include more suburban edges than the word “rural” suggests, so the map is worth checking before ruling it out. Both tests must pass: a qualifying borrower in an ineligible location does not qualify.

## Related terms

- [VA loanA mortgage guaranteed by the Department of Veterans Affairs for eligible service members, veterans, and some surviving spouses.](/glossary/va-loan/)
- [FHA loanA government-insured mortgage designed to widen access to financing, with lower down payment and credit thresholds than most conventional loans.](/glossary/fha-loan/)
- [Down paymentThe share of the purchase price you pay in cash, becoming your starting equity in the property.](/glossary/down-payment/)

## Go deeper

- [USDA loans](/loans/usda/)
- [Reading the USDA map and income limits](/blog/usda-map-income-limit-eligibility/)

## More in Mortgage & lending

- [Amortization](/glossary/amortization/)
- [APR (Annual Percentage Rate)](/glossary/apr/)
- [ARM (Adjustable-Rate Mortgage)](/glossary/arm/)
- [Cash-out refinance](/glossary/cash-out-refinance/)
- [Closing costs](/glossary/closing-costs/)
- [Conforming loan](/glossary/conforming-loan/)

## Have a question about your own situation?

Ondo handles brokerage, lending, property management and notary under one roof, so the answer does not change depending on who you ask.

[Talk to Ondo](/contact/)[Browse all terms](/glossary/)

Loan information is provided by Ondo Real Estate (NMLS ID on file). This is not a commitment to lend, a loan approval, or an offer of credit. Rates, terms, and payments shown are estimates for illustration only, are not a quote, and are subject to credit approval, underwriting, and market conditions. You are not required to use Ondo for financing to buy or sell with Ondo. Equal Housing Lender. Program rules, fees, and county loan limits change. Confirm the current published schedule and lender overlays. Nothing here is a quote, a lock, or a credit decision. [Licensing and disclosures](/licensing/)