A USDA Loan is available to individuals and families looking to live in a USDA eligible rural area.
To qualify, families need to be able to afford the mortgage payment, insurance, and taxes. The USDA Loan terms are for 30 years.
One of the many advantages of a USDA Loan is the ability to obtain a loan with no down payment. With this loan, you don't have to spend years of saving.
Because of the USDA guarantee, lenders can offer some of the lowest interest rates on the market. Your rate could vary because of other contributing factors, like your credit score and market conditions.
USDA loans don't have Private Mortgage Insurance. Alternatively, the USDA uses two fees: an upfront fee, which is paid once when you close your loan, and an annual fee, which is divided into your monthly mortgage payment.
Most traditional lenders look for a credit score of at least 640. If you are looking for the lowest interest rates, you'll need a credit score closer to 720. Luckily, there is no minimum credit score for USDA loans. You need a score of 640 or higher to qualify to use the USDA's automatic underwriting system.