USDA home loans are zero down payment mortgages for eligible low- and very low-income rural homebuyers. USDA loans are issued through the USDA loan program, also known as the USDA Rural Development Guaranteed Housing Loan Program, by the United States Department of Agriculture. These loans feature low interest rates and no down payment requirements, with interest rates as low as 1% with subsidies, and may be used by homeowners to purchase, repair, or upgrade owner-occupied primary residences. Packages may also combine a loan and a grant, providing up to $27,500 in assistance. You can find the income limits for the county where you live with this USDA map and table.
USDA mortgages involve:
A monthly payment – including PITI – of 29% or less of monthly income
Dependable income typically for a minimum of 24 months
Acceptable credit history – with no accounts in collections with 12 months
Streamlined processing for credit scores of 640+