USDA Loan Pros and Cons

KEY TAKEAWAYS

• USDA loans are guaranteed by the USDA and can reduce the costs of homeownership with no down payment requirements and lower interest rates.
• A USDA loan is not for everyone; some borrowers won’t qualify based on their income, while others may choose a different type of loan so they’re not limited to rural locations.
• 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.