The USDA Home Loan is not as popular as FHA and Fannie Mae, but that does not mean it is not a good option for potential homeowners.
For people that are looking for a way to buy a home with as little out-of-pocket costs as possible, the USDA mortgage could be their best option.
Along with no requirement for a down payment, the USDA mortgage will also allow borrowers to get a gift from a family member to cover the closing costs. Or, it is even possible for the seller of the home to cover the costs.
Some rules must be followed about income levels and the location of the property. But if those requirements are met, this mortgage option can be a great fit for a lot of people shopping for their first home.
12 USDA Loan Guidelines