WHAT IS A USDA LOAN?
A USDA loan, also known as Rural Development Loan, is a home loan program that is guaranteed by the US Department of Agriculture.
The program is designed to “improve the economy and quality of life in rural America.”
It offers low interest rates and no down payments, and you may be surprised to find just how accessible it is.
BENEFITS OF A USDA LOAN
There are a couple of major advantages to USDA loans that make them one of the most attractive loan options on the market.
A USDA loan requires no down payment, has flexible guidelines, and lower mortgage insurance premiums.
USDA/RD Guarantee Program
The USDA Guarantee loan program is available to a first time home buyer as well as a move up buyer. It provides a zero down loan at a low interest rate.
INCOME LIMITS
USDA loans have income limits that by location and depend on household size.
To find the loan guarantee income limit for the county where you live, click here
ELIGIBLE PROPERTIES
The home to be purchased must be located in a rural area as defined by USDA. Generally, the home must be outside of any city limits but can sometimes be found in suburban areas.
