United States Department of Agriculture (USDA)

Updated 2026-05-18

The United States Department of Agriculture (USDA) is a federal executive department responsible for developing and executing federal government policy on farming, agriculture, forestry, and food. It also plays a significant role in promoting economic development and quality of life in rural areas.

Role in Rural Development and Housing

Within its broad mandate, the USDA administers various programs focused on rural development and housing, primarily through its Rural Development (USDA) mission area and the Rural Housing Service (RHS). These programs are designed to help low and very low-income individuals and families in rural areas achieve homeownership, build, or repair homes.

Key functions related to housing and mortgages include:

• Rural Housing Programs: The USDA offers various loan and grant programs to help low- and moderate-income individuals and families purchase, build, or repair homes in rural areas.
• Guaranteed Loans: The USDA provides a Mortgage Guarantee (USDA/RD) to approved lenders for these loans, which reduces risk and allows for favorable terms such as 100% Loan-to-Value (LTV) financing.
• Direct Loans: In some cases, the USDA provides direct loans to very low-income applicants.

Key programs include:

• The Single Family Housing Guaranteed Loan Program (SFHGLP) (SFHGLP).
• The USDA 502 Loan Program.

Regulatory Recognition

USDA loans are recognized as a type of Agency QM under the Qualified Mortgage (QM) rules. This designation means they are presumed to comply with the Ability-to-Repay (ATR) Rule requirements due to the oversight and standards set by the USDA.