So, what’s the big deal with choosing a USDA loan? Primarily, first time and repeat buyers prefer USDA loans for the no down payment feature. Notice it states repeat home buyers! Many believe that 100% financing is reserved solely for first time home buyers.
Conversely, USDA loans are a valuable resource for repeat buyers. It provides advantages for those selling a home with little profit available for down payment. Furthermore, since a buyer could buy another house with no money down, it affords sales proceeds to be used for paying off debts.
USDA loans provide buyers such a fantastic opportunity in both qualification and affordability.
The USDA Loan is a mortgage option available to some rural and suburban homebuyers. USDA Home Loans are issued by qualified lenders and guaranteed by the United States Department of Agriculture (USDA).
USDA Home Loans are particularly favorable to those living in rural or low-income areas. USDA Loans offer $0 money down, lenient eligibility requirements and competitive interest rates - due to the loan being guaranteed by the USDA.
USDA mortgages stand alone as the only mainstream zero money down program available to borrowers that have not served in the military. Eligible borrowers will be hard pressed to find a home loan program that offers more favorable terms.
USDA Loans are one of the last $0 down mortgages with 100 percent financing, resulting in low out-of-pocket costs.
The USDA's definition of "rural" is largely liberal, meaning many in small towns, suburbs and exurbs of major U.S. cities meet the "rural" requirement.
USDA Loans are designed to provide homebuyers with lenient eligibility requirements that help low to moderate income families purchase a home.