USDA, it isn’t just for that prime steak you’re looking to throw on your BBQ. It stands for United States Department of Agriculture. How does that have anything to do with a mortgage? A USDA Mortgage provides low-cost, low rate, insured home mortgages for people who want to become home owners in rural areas.
A USDA home loan might be right for you if you want to live in a rural area and purchase a home with no down payment. Now rural doesn’t mean you have to live in the country where your neighbor is a mile down the road. It could be in a city just with a low population. The other great thing about a no money down USDA mortgage is that it’s very similar to the credit requirements of an FHA Mortgage.
Besides credit there are two main qualifiers for a USDA home loan. first is the location of the home and second, house hold income based on the how many family members will be living there.