If having a little land and a decent home outside of the city is a priority for you, a USDA loan may be your road to rural living. USDA mortgages finance the purchase of residential properties outside of urban areas, often with no down payment. Read more: What are government home loans? In this article: What are USDA loans? To encourage strong communities and affordable housing, the United States Department of Agriculture's Rural Development program guarantees loans for approved lenders. USDA mortgages ...