Chances are you associate the United States Department of Agriculture (USDA) with things such as food safety, plant inspections, and food pyramid. What most people are not aware of is that this government body is also tasked with rural development.
The United States Department of Agriculture believes that urbanizing rural areas helps create better life quality and strong communities. One of the ways they achieve this is by providing guaranteed home loans to low and moderate-income families. These loans are best referred to as USDA mortgage loans.
But Exactly What is a USDA Mortgage Loan?
A USDA mortgage loan is a home loan that makes buying homes more affordable in rural areas. The USDA backs these loans similar to how the Department of Veterans Affairs backs VA home loans for veterans and their loved ones. This backing means that lenders can provide lower interest rates and there’s no need for a down payment.