If you thought U.S. Department of Agriculture (USDA) loans were just for farmers, think again.
A USDA Guaranteed Rural Housing Loan is a 30-year mortgage with an interest rate determined by the lender. They were long thought of as just for farmers, but the program has been expanded in recent years to help families without adequate housing finance the purchase of a home in a rural area.
No down payment is required, which sets these loans apart from more traditional home loans.
Applicants may have incomes up to 115% of the area’s median income, be creditworthy, and be able to afford mortgage payments, including insurance and applicable taxes.