USDA loans: How to qualify in 2026

USDA loans help low- to moderate-income buyers purchase homes in eligible rural areas with no down payment. There are two types: Guaranteed Loans through private lenders and Direct Loans from the USDA, which may offer interest rates as low as 1%. Borrowers must meet income limits, use the home as a primary residence, and keep mortgage payments under 29% of gross income. USDA loans include upfront and ongoing guarantee fees and do not offer adjustable-rate options.