A USDA loan is an excellent option for eligible rural and suburban homebuyers looking for 100% financing with no down payment required. Backed by the U.S. Department of Agriculture, these loans offer competitive interest rates and lower mortgage insurance costs. They are designed to promote homeownership in designated rural areas, making them ideal for those with modest incomes. Additionally, USDA loans have flexible credit requirements, making them accessible for many borrowers who might not qualify for conventional financing.