A USDA home loan is a mortgage that is insured by the US Department of Agriculture. These loans are available to rural homeowners who may not qualify for other types of mortgage loans.
USDA home loans can be used to purchase or refinance a home, and there is no down payment required. There are also no monthly Mortgage Insurance Premiums (MIP), which can save borrowers hundreds of dollars per month.
USDA home loans are available with fixed or adjustable interest rates, and the interest rate is typically lower than what is available from other lenders. Borrowers who have trouble qualifying for a conventional mortgage may find that a USDA home loan is the perfect solution.
QUICK TIP: Believe it or not, USDA loans are only for primary residences. So, if you're looking for a second home, a USDA is not the best option – sorry! |
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Who is this ideal for? Borrowers who have trouble qualifying for a conventional mortgage may find that a USDA home loan is the perfect solution.