The USDA home loan program, also known as the USDA Rural Development Guaranteed Housing Loan Program, is a mortgage loan offered to rural property owners by the US Department of Agriculture. To qualify, families must be without adequate housing, but able to afford the mortgage payments.

Those eligible may have an income up to 115% of median income for the area. These loans offer 100% financing to qualified buyers with the option for closing costs to be either paid for by the seller or financed into the mortgage loan. Loan limits are up to $472,030.

Disadvantages: USDA loans include lifetime monthly insurance premiums (MIP), including an upfront MIP that is rolled into the note. MIPs for USDA loans are typically higher than those associated with conventional mortgage loans.

• 640 minimum score for approval.
• Houses with over 5 acres and with other out buildings may not qualify