Why a USDA Loan Might Be for You
Published On March 24, 2023
Don’t be fooled! USDA loans are NOT just for farms and homes in underdeveloped areas. According to the Housing Assistance Council, 97% of U.S. land is located within USDA-eligible boundaries! So these are a great loan option with great benefits, that many homebuyers should consider.
What exactly are USDA loans? USDA loans are a type of home loan backed by the United States Department of Agriculture (USDA) that offer several benefits for homebuyers. Some of these benefits include:
1. No down payment required: One of the main advantages of a USDA loan is that they do not require a down payment. This means that eligible borrowers can finance up to 100% of the home’s purchase price, which can be a significant advantage for those who may not have a large sum of money to put down on a home.
2. Low-interest rates: USDA loans typically offer lower interest rates compared to other types of loans, such as conventional mortgages. This means lower monthly payments which can save borrowers money over the life of the loan.
3. Flexible credit requirements: USDA loans are designed to help borrowers with lower credit scores or limited credit histories. The program’s guidelines allow for more flexible credit requirements compared to other loan programs, which can make it easier for borrowers to qualify.
4. No mortgage insurance required: Unlike FHA and conventional loans, USDA loans do not require borrowers to pay for private mortgage insurance (PMI). This can save borrowers thousands of dollars over the life of the loan.
5. Rural property eligibility: USDA loans are specifically designed to help borrowers purchase homes in rural areas. This can be a great option for borrowers who want to live in a more rural setting or who may not qualify for other loan programs due to their location.
Overall, USDA loans can be a great option for eligible borrowers looking to purchase a home in an eligible area. They offer lots of benefits that can help make homeownership more affordable and accessible.
Get in touch to find out if this could be just the right solution for YOU!
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© 2025 NFM Lending, LLC dba BluPrint Home Loans. America’s Common Sense Lender® Trade/service marks are the property of NFM Lending. www.nfmlending.com. Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act.
Equal housing lender. Make sure you understand the features associated with the loan program you choose, and that it meets your unique financial needs. Subject to Debt-to-Income and Underwriting requirements. This is not a credit decision or a commitment to lend. Eligibility is subject to completion of an application and verification of home ownership, occupancy, title, income, employment, credit, home value, collateral, and underwriting requirements. Refinancing an existing loan may result in the total finance charges being higher over the life of the loan. Not all programs are available in all areas. Offers may vary and are subject to change at any time without notice. Qualifying credit score needed for conventional loans. LTV’s can be as high as 96.5% for FHA loans. FHA minimum FICO score required. Fixed rate loans only. W2 transcript option not permitted. Veterans Affairs loans require a funding fee, which is based on various loan characteristics. For USDA loans, 100% financing, no down payment is required. The loan amount may not exceed 100% of the appraised value, plus the guarantee fee may be included. Loan is limited to the appraised value without the pool, if applicable. The pre-approval may be issued before or after a home is found. A pre-approval is an initial verification that the buyer has the income and assets to afford a home up to a certain amount. This means we have pulled credit, collected documents, verified assets, submitted the file to processing and underwriting, ordered verification of rent and employment, completed an analysis of credit, debt ratio and assets, and issued the pre-approval. The pre-approval is contingent upon no changes to financials and property approval/appraisal. For Arizona originators: AZ# BK-0934973. In Alaska, business will only be conducted under NFM Lending and not any of our affiliate sites.
Equal housing lender. Make sure you understand the features associated with the loan program you choose, and that it meets your unique financial needs. Subject to Debt-to-Income and Underwriting requirements. This is not a credit decision or a commitment to lend. Eligibility is subject to completion of an application and verification of home ownership, occupancy, title, income, employment, credit, home value, collateral, and underwriting requirements. Refinancing an existing loan may result in the total finance charges being higher over the life of the loan. Not all programs are available in all areas. Offers may vary and are subject to change at any time without notice. Qualifying credit score needed for conventional loans. LTV’s can be as high as 96.5% for FHA loans. FHA minimum FICO score required. Fixed rate loans only. W2 transcript option not permitted. Veterans Affairs loans require a funding fee, which is based on various loan characteristics. For USDA loans, 100% financing, no down payment is required. The loan amount may not exceed 100% of the appraised value, plus the guarantee fee may be included. Loan is limited to the appraised value without the pool, if applicable. The pre-approval may be issued before or after a home is found. A pre-approval is an initial verification that the buyer has the income and assets to afford a home up to a certain amount. This means we have pulled credit, collected documents, verified assets, submitted the file to processing and underwriting, ordered verification of rent and employment, completed an analysis of credit, debt ratio and assets, and issued the pre-approval. The pre-approval is contingent upon no changes to financials and property approval/appraisal. For Arizona originators: AZ# BK-0934973. In Alaska, business will only be conducted under NFM Lending and not any of our affiliate sites.