WHAT IS A USDA/RD MORTGAGE
A USDA/RD mortgage is a type of home loan offered by the United States Department of Agriculture (USDA) Rural Development program. These loans are intended for low-to-moderate income borrowers in rural areas who are unable to obtain traditional financing. USDA/RD mortgages offer 100% financing meaning you can finance the full value of the home, and have low-interest rates and flexible credit requirements. The program also includes mutiple types of loans, including single-family housing loans and multi-family housing loans, all designed to promote economic development in rural areas.
SEE IF THE HOUSE YOU'RE LOOKING AT IS IN A USDA ELIGIBLE AREA
There are a few reasons why you may choose a USDA/RD mortgage, including:
1. Zero down payment: USDA/RD mortgages do not require a down payment, making them an attractive option for borrowers who cannot afford to make a large upfront payment.
2. Lower interest rates: USDA/RD mortgages often come with lower interest rates than other types of mortgages, which could save borrowers money over the life of the loan.
3. Rural area eligibility: These mortgages are specifically designed for borrowers purchasing homes in eligible rural areas, which could make them a good option for those who want to live outside of urban areas.