USDA loans are zero-down-payment mortgages for those who want to purchase a home in a rural area. These are loans guaranteed by the United States Department of Agriculture (USDA) and they help eligible low to moderate-income families achieve homeownership by offering a zero down payment option.
USDA Loan Benefits
- 100% financing in addition to the required guarantee fee = 102% of the appraised value
- Low interest rates and closing costs
- Low FICO score requirements
- Gift funds can be used for closing costs
- 30-year, fixed-rate mortgage