5 Free Bonus Tips you didn’t know about USDA loans will leave you stunned. USDA is a loan product that comes for the Department of Agriculture. The Department of Agriculture offers the USDA loan, I believe in helping rural Americans with homeownership, especially those that work in the farm industry.
What is a USDA loan?
A USDA loan is a government-backed loan for individuals who live in rural communities. There are small cities that may qualify under the USDA guidelines. However, the best way to find out is to go to the website and click on the qualifying area map. The income, credit, and capacity (cash) guidelines are not as firm as other government back loans like FHA and Va loans.

Income Guidelines
The applicant must have the ability to show they can repay the loan.
Credit
There are no set credit guidelines, but the applicant must show a reasonable credit history. Again, unlike FHA and VA, which have stringent credit guidelines.
No Money Down
The borrower does not need to show a cash reserve or money for a down payment because the USDA loan program provides 100% financing.
New Construction
The USDA loan program allows you to have a home built under this program, unlike other government back programs.
Property Location
The property must be in a USDA-designated rural area to qualify for the program.
Wrapping Up
In conclusion, there are five bonus tips about USDA loans that you may not have known. The USDA program is flexible and without some of the more stringent guidelines as other government-backed loan programs. I encourage you to research more information about the loan program so you can purchase a home in a rural community with the USDA loan.