A USDA home loan is a competitively priced mortgage option that helps to make purchasing a home more affordable for low-income individuals living in designated rural areas.
USDA loans are low-interest mortgage and home improvement loans that low-income suburban and rural homebuyers can get with no down payment, although you’ll still need to pay closing costs.
Homebuyers who acquire a primary residence in a non-urban location and whose household income does not exceed the average household income for the area are eligible for USDA loan.
The Guaranteed Loan and Direct Loan are two residential lending programs offered by the USDA. They’re available for single-family, multi-family, community facilities & preservation projects.
The USDA mortgage program is limited to low and moderate income households. Income limits vary by county and household size. Use the USDA eligibility site to verify your income eligibility.
To find out if a property you’re considering is eligible for USDA loan, use USDA Eligibility Site, you can enter a specific address for determination to review general eligible areas.
USDA loans come with closing costs and USDA Loan program has no loan limits. USDA loans are available as 30-year fixed-rate mortgages with extended repayment periods of up to 38 years.