If you meet income guidelines, you can buy a home in a qualifying rural area for 0% down.
USDA loans are an attractive option for buying a home in a qualifying rural area, especially if you’re a first-time home buyer. These are some of the benefits:
- USDA loans require no down payment unlike FHA and conventional loans.
- You can qualify with a credit score as low as 640.
- In most cases, the USDA monthly guarantee fee will be lower than FHA monthly mortgage insurance.