No Money Down
If you are a first time home buyer and are currently weighing your options, one excellent avenue to consider is a USDA loan. While there are guidelines that have to be followed, the greatest benefit of this loan is that it is 100% financed, which means no money down for you as the homebuyer. You must keep in mind that there will always be some closing costs involved, but the traditional 20% down payment does not exist for USDA loans.
Qualifying for a USDA Loan
Another major perk to this loan is that you do not have to have perfect credit or make over a certain amount of money to qualify for the loan. If you have a low credit score or low income, you may still be eligible for this loan. A credit score of 640 or higher is desired and there are actually maximum income requirements that have to be followed. A mortgage broker can act as a matchmaker for the right lender when it comes to this type of loan. The broker is familiar with the lenders and their requirements and can help place you with the right bank.
These are only a few of the pros of going the route of a USDA loan. After all is said and done and you research the different types of loans out there, you will definitely find that this government backed loan is a very popular avenue to explore when shopping around for the different loan types.