Property types eligible for USDA loans include single-family homes, condominiums and manufactured housing on a permanent foundation. Eligibility requirements vary depending on property location, and these loans are offered only to individuals whose income is below rural-development county limits based on the number of members in the household.
Important benefits of USDA mortgages include:
- No money down, and up to 103.5% financing
- Available for purchase and no-cash-out refinances of primary residences
- Gifts and/or grants are allowed for closing costs
- Borrower’s closing costs may be paid by the seller or financed into the loan amount
- A funding fee eliminates the need for private mortgage insurance