The USDA Home Loan is much more accessible than people think because you do not need to be a farmer in a rural area just to qualify. If you live in a rural or semi-rural area and in some cases, some qualified suburban locations, you can apply for this loan. Of course, you will need to pass other requirements like income.
There are 3 kinds of financing offered by the USDA, which you can apply for based on your need.

1. Single Family Guaranteed Loans
This kind of loan does not require any down payment and may be spent for a purchase, refinancing, rehabilitation, improvement, or even extension of an existing property. You may also use it for closing costs and other expenses related to the purchase.

Compared to FHA or other conventional loans, USDA guaranteed loans have lower rates. If you have average credit ratings, the mortgage rates can be 1% or lower. However, you will need to make sure you live in a qualified area, usually rural areas with less than 35,000 people living there. In some cases, outlying suburban areas may also be eligible. It is also aimed at those with low to moderate incomes. You will need to check if your income and location meet the requirements.

These loans require mortgage insurance of around 1% plus a 0.35% fee to be paid annually. Buyers should also reside in these homes and should prove their ability to pay off the loan.

2. Single Family Direct Loans
While they are called loans, there are, in reality, subsidized grants that will bring down your mortgage payment to up to 1% for a short amount of time. Borrowers should pay all or a part of the subsidy when the property gets transferred or when the borrower is not living anymore in the property. There is also no down payment required.
For these loans, the qualified areas are also the same as for the guaranteed loans and the adjusted family income will determine how much assistance an applicant is capable of receiving.

In order to receive a direct loan, you should not prove that you are unable to get support from other lenders. The home should also be the main residence and not exceed 1,800 square feet.

3. Single Family Housing Repair Loans And Grants
These loans allow very low-income homeowners to have the necessary funds to repair, modernize, or improve their properties, as well as allow very low-income elderly homeowners to remove any safety hazards in their homes.
You can apply for a maximum loan of $20,000 or a maximum grant of $7,500. The repayment can last over 20 years, with the interest rate at 1%.

The USDA home loans allow very low to moderate income individuals to become homeowners and by doing your homework, you might find that you are qualified for these very borrower-friendly mortgages or grants.