USDA Loan Program

No down payment option for low to moderate income borrowers.

The Department of Agriculture provides low-interest, no-down-payment loans for borrowers with low to moderate incomes buying property in rural areas or small towns.
In the past these loans were considered "farm: loans; however, 97% of the U.S. is USDA loan eligible.

Benefits of USDA loans:

  • As low as 620 credit

  • Provides 100% loan-to-value financing for existing homes or new construction based on appraised value with no MI.

  • No minimum reserve payment.

  • Available to low- and moderate-income rural households.

  • No requirement to be a “first-time” home buyer.

  • Less up-front cash-to-close requirements for this program than for conventionally insured or FHA loans.

  • Upfront guarantee fee payable to Rural Development (RD) at closing, which may be financed above the appraised value.

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