A USDA loan is a type of mortgage designed for low- to moderate-income families to purchase homes in eligible rural areas. It is backed by the USDA, facilitating lower interest rates and eliminating down payment requirements. Two common USDA loan programs include the Single Family Housing Guaranteed Loan Program and the Single Family Housing Direct Home Loan. The process involves obtaining a USDA-approved lender, adhering to stricter appraisal guidelines, and focusing on homes in eligible areas. Qualifying properties must serve as primary residences and cannot be investment or rental properties.
A USDA loan is a mortgage loan that helps low- to moderate-income families purchase a home in an eligible rural area. The loan is backed by the USDA, allowing lenders to offer lower interest rates and require no down payment.
The two most common USDA loan programs are the Single Family Housing Guaranteed Loan Program and the Single Family Housing Direct Home Loan.
The lender must be approved by the USDA, and the approval process may take longer because the loan needs to be approved by both the lender and the USDA.
To qualify for a USDA loan, the property must serve as a primary residence and be located in a USDA-approved area, typically outside metropolitan zones.
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