USDA loan

A government-backed loan for rural and some suburban areas, from the U.S. Department of Agriculture. 0% down for eligible buyers who meet income limits.

Financing · Updated September 2026

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Where this comes up in a sale, and what follows

The steps of a sale, in order. Each one has its own free guide.

Host showings and open houses (comes before)Set your showing process · Vet buyers before showings
Review offers and negotiateThis word comes up hereCompare offer terms · Verify buyer financing
Go under contractSign the purchase agreement · Confirm earnest money is deposited
Buyer's inspectionCoordinate access for the inspector · Give the inspector clear access

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Part 1 of 4

Why a seller cares

If your home is in an eligible area, a USDA buyer can buy with nothing down. Their loan has property conditions and an extra layer of approval, so the timeline runs a little longer than a conventional one.

Part 2 of 4

A simple example

Your home is outside town in a USDA-eligible area. A buyer offers $240,000 with a USDA loan, zero down, and asks for 45 days to close.

USDA loan: a simple example
What is different	What it means for you
Zero down payment	The buyer has little cash for an appraisal gap
USDA's own review after the lender's	A few extra days, sometimes more
Property standards	Like FHA: the house has to be sound and safe

USDA opens the door to buyers with no savings, at the cost of a slower door.

Part 3 of 4

What people get wrong

That USDA loans are only for farms. They are for homes in eligible areas, which include a lot of ordinary suburbs and small towns.

Part 4 of 4 · where to read next

Where it appears in the sale

Property facts and seller disclosuresOn the market · uses this word in the guide itself How to review an offer and negotiateOn the market · uses this word in the guide itself Settling repairs after an inspectionOn the market · uses this word in the guide itself On the marketOn the market · the stretch of the sale this word belongs to

What a definition is, and what it isn't

Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.

Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish

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