USDA loans is issued by the United States Department of Agriculture under the USDA loan program. These 100% loans require no down payment. There are three types of loan programs offered.
Single Family Housing Guaranteed Loan in which the USDA guarantees a mortgage issued by participating local lenders. Eligible applicants may build, rehabilitate, improve or relocate a dwelling in an eligible rural area. This program is for low- and moderate-income households.
Single Family Housing Direct Loans issued by the USDA for low- and very low-income applicants. This loan provides payment assistance to increase an applicant’s repayment ability.
Single Family Housing Repair Loans and Grants provides loans to very-low-income homeowners to repair, improve or modernize their homes or grants to elderly very-low-income homeowners to remove health and safety hazards.
Don’t assume that you must live on a farm or next to a pasture. You would be surprised at how many properties are located in a USDA Eligibility Area. Many homebuilders are purchasing land in USDA areas in an effort to attract buyers who may or may not have funds for a down payment. To determine income and property eligibility for a USDA loan, click on the link below.