Contents
Including the Home Loan Guarantee program and the Section 502 Direct Loan Program, the USDA loans are designed for low-income homebuyers in rural areas. In the Guaranteed Home program, the USDA provides a 90% loan guarantee to a qualifying lender to reduce the risk of the loan. As a result, lenders will extend 100% loans to their borrowers.
USDA loan – A loan program guaranteed by the U.S. Department of Agriculture for. FHA loans have one big catch called mortgage insurance.