USDA Loans

How it works...

USDA home mortgages are loans backed the U.S. Department of Agriculture as part of the USDA Rural Development Guaranteed Housing Loan program, which is also known as Section 502. USDA loans are accessible to home buyers with below-average or better credit scores and provide the option for no-money-down or very little money down, ranging from $500 to $1,000.

USDA loans require an upfront and monthly version of mortgage insurance.  However, when compared to FHA, USDA’s charges tend to be somewhat less.

USDA has maximum family income requirements and also is confined to lending on “county” properties, located outside legal city limits.