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USDA home loan eligibility for rural and small-town buyers
Direct vs guaranteed
Plain answer
USDA has two main home loan programs. Guaranteed loans are made by approved private lenders for moderate-income households. Direct loans are made by Rural Development for lower-income households and can include payment assistance. Income limits and application steps differ.
Last reviewed against the primary sources listed below.
Compare
Guaranteed
Direct
Who lends
Approved lenders
Rural Development
Income
Moderate
Low and very low
Apply through
A lender
Local USDA office
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What is the difference between USDA direct and guaranteed?