USDA Home Loans require no down payments and don’t need private mortgage insurance.
SmartAsset took a look at USDA mortgages and explained the requirements that applicants need to meet. For instance, the loans can be used for homes under 2,000 square feet in rural or eligible suburban areas. People can only qualify if they can’t secure a conventional home loan and if their current residence is inadequate or unsafe.
Individuals need decent credit scores, and housing costs cannot exceed 29 percent of monthly gross income.
The USDA home loan program makes homeownership possible for low- and middle-income individuals and families who can’t qualify for conventional loans.