 TITLE: What Is a USDA Loan? CONTENT: How Does a USDA Loan Work?\n--------------------------\nThe USDA's Rural Development Guaranteed Housing Loan Program offers loans to help low- to moderate-income consumers buy homes. To qualify, applicants must be looking to finance a home in an eligible rural or suburban area. The home must be intended for use as their primary residence and the homebuyer's income must fall below specific limits, which depend on local median income levels.\nDensely populated urban areas of the country are excluded from the program, but that leaves 97% of the geographical U.S. as eligible for USDA home financing. The USDA's Single Family Housing Direct Self- Assessment tool can help you determine your eligibility in the area where you wish to finance a home. END