The benefits of USDA loans include no down payment requirement, lower credit score requirements, competitive interest rates, and no PMI required for low or no down payments.
Zero Down Payment
The biggest advantage of the USDA home loan program is that it allows for zero down. As long as the property you want to purchase is inside the USDA area and approved for using USDA financing, you can buy it with zero down.
Lower Credit Scores
Another advantage of using a USDA loan is that it usually allows lower credit scores similar to what the FHA and VA allow. Since these loans are backed by the US government, they have lower minimum credit score requirements.
No PMI
Looking to avoid having to pay PMI on your mortgage payment? The USDA loan is a perfect alternative to using an FHA loan. Going this route can help reduce your monthly mortgage payment as long as the property is in a USDA zone.
