USDA loans are mortgages offered by the United States Department of Agriculture (USDA) to eligible low and moderate-income borrowers who wish to purchase or refinance a home in rural or suburban areas. These loans don’t require a down payment and offer low-interest rates with flexible credit score requirements. The USDA also offers a range of loan types, including direct loans and guaranteed loans, to meet different borrower needs. To qualify for a USDA loan, applicants must meet income and location requirements, have a credit score of at least 640, and show proof of stable income and employment.