USDA mortgage loans provide affordable financing options for properties located in designated small towns, suburbs and exurbs. This program helps eligible low- to moderate-income families achieve homeownership by offering a no-down-payment option.
Highlights of USDA mortgage loans include:
The ability to finance up to 100% of the appraised value
The ability to finance the up-front portion of the guarantee fee
Lower credit score requirements
Lower interest rates
Lower closing costs
The ability to use gift funds for closing costs
30-year fixed-rate mortgage terms