USDA Loan

Borrowers in rural areas have easier access to affordable housing, due to partnerships with the Rural Housing Service. The loans are backed by the Rural Housing Service, a division of the U.S. Department of Agriculture.

Advantages

• No down payment is required for low- and moderate-income buyers.
• Affordable monthly mortgage payments.
• No cash reserves required in your savings account when you go to closing.
• You need less cash up-front than you would for FHA loans.

Details

• Your income is limited to 115% of the area median income for the guaranteed loan.
  
• Single-family, non-farm, owner-occupied principal residences, are eligible.
  
• Eligibility is limited to rural areas, which generally have a population no more than 10,000. In areas far from major metropolitan cities, the town population limit (where the property is located) may be as high as 20,000.
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