January 13, 2010
A USDA mortgage
is one insured by the US Department of
Agriculture, for which eligibility is limited to properties in rural
areas and to borrowers with incomes below maximums set for each area.
The USDA program is very similar to the
VA home mortgage program in that both allow loans with little or no down
payment and limit eligibility to those targeted by the program. In
addition, both programs charge borrowers an upfront fee designed to
cover losses, which is typically included in the loan balance. Both
programs are usually less costly to the borrower than a comparable FHA,
but with 20% down, they are more costly than a comparable conventional
mortgage. For other comparisons, see
Are VA Loans a Good Deal?
Additional information can be found at
http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?Home
