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Loan Types

USDA Loan

A USDA loan is a mortgage backed by the U.S. Department of Agriculture for buyers in eligible rural and many suburban areas, with no required down payment. It has income limits based on your area and household size, and a guarantee fee instead of traditional mortgage insurance. The home must be in a USDA-eligible location.

USDA loans are one of the few paths to buying with nothing down, and the eligible map covers far more than people expect. Plenty of small towns and outer-suburb neighborhoods qualify, not just remote farmland. The catch is that both the location and your household income have to fit the program’s limits, which are set by area and family size.

Instead of monthly mortgage insurance, USDA charges a guarantee fee, part upfront and part annual. It keeps the payment lower than many low-down options. I’m a loan officer who helps eligible buyers get USDA loans, and I’m not affiliated with or endorsed by the USDA; this is general education, not a government program offer.

Related terms

VA Loan

A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs and made by private lenders for eligible veterans, service members, and some surviving spouses. Its biggest draws are no required down payment and no monthly mortgage insurance. A one-time funding fee usually applies, though some borrowers are exempt.

FHA Loan

An FHA loan is a mortgage insured by the Federal Housing Administration. It often allows a lower down payment and more flexible credit guidelines than conventional loans, which helps many first-time and credit-rebuilding buyers. The trade-off is mortgage insurance (MIP), which on many FHA loans can last longer than conventional PMI.

Conforming Loan

A conforming loan is a conventional loan that meets the guidelines and loan limits set by Fannie Mae and Freddie Mac. Staying within the conforming limit often means more competitive terms. Loans above that limit are called jumbo loans and follow different rules, since they can't be sold to those agencies.

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Last updated: June 13, 2026

This definition is educational and isn't an offer to lend or financial advice. Rates, programs, and guidelines may change without notice. All loans are subject to credit and property approval.

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