What is a USDA Loan?

USDA home loans are mortgages offered to rural property owners by the United States Department of Agriculture. Many areas that Nations Lending originates loans in fall into this category. A “rural property” is defined by the USDA as any property in open country that is not part of or associated with an urban area. Rural areas are more closely defined as any town, village, city or densely settled area that has a population of less than 10,000 residents. When in doubt, a borrower can check their property type on any recent appraisal or speak to their Personal Mortgage Advisor.


USDA loans require no down payment, and the borrower may finance up to 100% of the property value. The home or property must be owner occupied, and the borrower must meet the income restriction for the county where the property is located. Each county has a maximum income requirement established by the USDA.