You probably associate the United States Department of Agriculture, or USDA, with things like the food pyramid, food safety and plant inspections. But did you know the USDA is also involved in rural development?
A USDA loan is a cost-effective mortgage choice, making homeownership more accessible for low-income residents in specified rural regions. These loans are supported by the U.S. Department of Agriculture, similar to how the Department of Veterans Affairs backs VA loans for eligible veterans and their families. Due to government backing, lenders often provide lower interest rates compared to traditional loans. Qualified applicants can purchase a home without a down payment, though closing costs still apply.
There are 3 Main Types of Loans