USDA Loans: How They Work, Who Qualifies, and What Buyers Should Know TL;DR: USDA loans are government-backed mortgages designed for eligible buyers purchasing a primary residence in a USDA-eligible area. Qualified borrowers may be able to finance up to 100% of the purchase price with no down payment. Eligibility depends on factors such as household income, property location, occupancy, credit and debt history, and the borrower’s ability to repay. USDA loans can be an attractive option for buyers who qualify,