A USDA-backed mortgage can be an attractive option for buyers who are looking beyond major cities and want to purchase a home in an eligible rural area. The program is designed to help qualifying low- and moderate-income households achieve homeownership, with financing that can cover 100% of the purchase price in qualifying circumstances.

Unlike what the name might suggest, you don't need to own a farm or work in agriculture to qualify. The home simply needs to meet USDA's property requirements, and your household income must fall within the applicable limits for the area.

USDA loans can be used for eligible new or existing homes, and the program isn't limited to first-time homebuyers. If you're considering a home outside a major urban area, it's worth checking whether the property and your circumstances meet the requirements.