Who would have thought in this time of financial crises due to subprime loans and zero money down that there would be a government program that would allow for 100% financing on a home. This loan offered by the USDA allows home buyers the opportunity to receive 100% financing on their home purchase with little restrictions as far as qualifying for the loan is concerned.

First you should know that this loan program is designed for buyers who are purchasing homes in areas that are classified as “rural”. USDA loans do not qualify in areas that are designated “urban”. This does limit the location of the property to only rural but you might be surprised at what areas qualify as rural.

Another advantage for a USDA loan is that mortgage insurance is not required on the loan. This can often add anywhere from eighty to several hundred dollars per month to your monthly payment based on the loan amount.  You should know that a USDA loan will only appraise the value of the home. If there is a pool with the property, an appraisal will not include the pool. This is important to know as the sale price of the house may not match the appraised value from the bank. Make sure that this is taken into consideration as not to have the sale fall apart due to a low appraisal.

To identify if a property is in the USDA area, you can visit the attached link to the USDA site. Enter in the address and click submit. Keep in mind that a newer address may not show up on the search. You can also check with your local mortgage broker for the availability of a USDA property.  

http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp&NavKey=property@11