USDA

U.S. Department of Agriculture (USDA) Loans

These loans are designed to help buyers put down roots in rural areas, are backed by the government, and offer zero to low down payment options and flexible credit requirements. Eligible applicants may build, rehabilitate, improve, or relocate a dwelling as a primary residence in an eligible rural area and may borrow 100 percent of the appraised value. USDA loans are offered with a fixed- or adjustable rate. Some state and county maximum loan amount restrictions may apply.

What are the biggest benefits of a USDA home loan?

• USDA loans come with a no down payment option; this may make it easier for you to become a homeowner and save money on upfront costs.
• These loans have more relaxed credit requirements, making it easier for borrowers with less-than-perfect credit to qualify.
• USDA loans have lower interest rates than some other types of mortgage loans, which can result in significant savings over the life of the mortgage.
• USDA loans allow seller contributions to closing costs.
• Low monthly private mortgage insurance costs.