A USDA loan is a type of mortgage loan that is issued by the United States Department of Agriculture's (USDA) Rural Development program. The USDA loan program is designed to help low- to moderate-income borrowers in rural areas become homeowners.

USDA loans offer several benefits, including:

•  No down payment requirement: Borrowers can finance up to 100% of the home's appraised value, which means no down payment is required.
• Lower mortgage insurance premiums: USDA loans have lower mortgage insurance premiums compared to FHA loans, which can save borrowers money over the life of the loan.
• Flexible credit requirements: The USDA loan program has flexible credit requirements, which can make it easier for borrowers with less-than-perfect credit to qualify.

To be eligible for a USDA loan, the property being financed must be located in a rural area as defined by the USDA. The borrower's income must also be within certain limits, which vary depending on the location and size of the household.

USDA loans are available for a variety of purposes, including purchasing a home, refinancing an existing loan, and making home repairs or improvements. However, they are not available for investment properties or second homes.

It's important to note that while USDA loans are a good option for eligible borrowers, the application process can be complex and lengthy. It's important to work with a lender who is experienced in USDA loans to ensure a smooth application process.