Affordable Mortgage Offered Through USDA

Some first time homebuyers are now being forced to the side when it comes to a home purchase. Rising rates ad high home values are keeping many people from a viable down payment, keeping them from obtaining a mortgage. Enter the creative financing of paying more per month for less of a down payment, or getting a sub-prime loan. A different idea may be to turn to the USDA, which has brought a balance to the rural mortgage market for the last decade.

The programs do require that a person live in a rural area; defined as an area that is less than 50% developed. There is also an income limit that cannot be exceeded based on family size. More than $40 million was given to the USDA in 2005 for loans through approved lenders, including Wells Fargo, Countrywide and Chase. In return, the program gives a borrower 100% financing with no down payment and no mortgage insurance necessary.