USDA Home Loans are offered in rural areas as determined by the United States Department of Agriculture (USDA). The USDA's mission is to help lower income households obtain home loans at reasonable mortgage rates. USDA home loans offer many advantages to qualified borrowers.

USDA mortgage loans allow for purchase and no cash out  refinances of primary residences which include:

• 100% financing
• No monthly mortgage insurance
• No asset or automatic reserve requirements
• Gifts allowed for closing costs
• Required property improvements can be financed into the loan up to 102% of the "improved" value. (USDA will allow repairs to be completed after closing.)

Eligibility for USDA loans are available on single family homes, condominiums and manufactured homes buily on a permanent foundation in rural areas and do have minimum income and property eligibility requirements.

Even though a mortgage insurance premium is not required, USDA charges a 2% funding fee to guarantee the mortgage. This fee may be financed into the loan amount.