USDA home loans: start with the home, the household and the address.

A country-home search involves two separate questions: does the property fit your life, and does it fit your financing? Answer both before you become attached to a particular parcel.

Two paths to compare

Section 502 Guaranteed loans come through approved lenders and serve eligible low- and moderate-income households buying a primary residence in an eligible rural area. Qualifying borrowers may obtain 100% financing. That is a loan to repay; ask the lender for a complete estimate of closing costs, fees and monthly expenses.

Section 502 Direct loans serve eligible low- and very-low-income applicants through USDA Rural Development. Payment assistance can help with repayment ability. Ask USDA how any subsidy repayment or recapture rules would affect you.

Bring the actual property to the conversation

• Have the lender or USDA check the exact address and current household-income rules.
• Describe acreage, outbuildings, the water source, septic system and any planned business use.
• Ask what inspections, repairs and cash at closing would be required.

For a working farm, also read our farm-funding guide. Do not assume a housing loan and a farm loan serve the same purpose.

Official sources & next steps

• USDA · Guaranteed home loans
• USDA · Direct home loans

Checked October 2, 2026. Program funding, eligibility and local requirements can change. Confirm details with the administering agency or qualified professional before making a financial or property decision.