USDA purchase loans, also known as USDA Rural Development loans, are mortgage loans guaranteed by the United States Department of Agriculture (USDA). These loans are designed to promote homeownership in eligible rural and suburban areas by offering affordable financing options.
It's important to note that USDA loans are available for primary residences only and cannot be used for investment properties or vacation homes. Overall, USDA loans are a good choice for borrowers who want to purchase a home in a rural or suburban area and who do not have the funds for a down payment. They offer competitive terms, flexible eligibility requirements, and can help lower-income families become homeowners.