A rural development loan is a type of mortgage loan offered to rural property owners by the United States Department of Agriculture (USDA) Rural Development. The USDA offers two types of rural development loans: the Single Family Housing Guaranteed Loan Program and the Single Family Housing Direct Home Loans.

The Single Family Housing Guaranteed Loan Program provides a 90% loan note guarantee to approved lenders in order to reduce the risk of extending 100% loans to eligible rural homebuyers. Applicants must meet income-eligibility, agree to personally occupy the dwelling as their primary residence, and be a U.S. citizen, U.S. non-citizen national, or Qualified Alien. The program helps lenders work with low- and moderate-income households living in rural areas to make homeownership a reality.

The Single Family Housing Direct Home Loans, also known as the Section 502 Direct Loan Program, assists low- and very-low-income applicants obtain decent, safe, and sanitary housing in eligible rural areas. Loan funds can be used to help low-income people or households buy homes in rural areas, build, repair, renovate, or relocate a home, or to purchase and prepare sites, including providing water and waste treatment equipment. Applicants must meet income eligibility for a direct loan, and the maximum loan amount an applicant qualifies for depends on their ability to repay a loan. Borrowers are required to repay all or a portion of the payment subsidy received over the life of the loan when the title to the property transfers or the borrower is no longer living in the dwelling.

The purpose of rural development loans is to help low- and moderate-income households living in rural areas to make homeownership a reality. Providing affordable homeownership opportunities promotes prosperity, which in turn creates thriving communities and improves the quality of life in rural areas.