USDA Home Loan - The United States Department of Agriculture collaborates with approved local lenders to provide 100% financing for eligible borrowers seeking to live in rural or developing areas. The USDA Guaranteed Loan is designed to support rural homebuyers with competitive interest rates and favorable loan terms. Generally, a credit score of 640 is required by most lenders, and a first-time buyer is not a prerequisite.

 

FHA Home Loan - Borrowers qualify for an FHA loan with a down payment as low as 3.5% if they have a credit score of 580 or higher. For those with credit scores between 500 and 579, a down payment of 10% is necessary. It's essential to keep in mind that a lower credit score may lead to a interest rate.

 

VA Home Loan - A VA loan, also referred to as a Veterans Administration home loan, is one of the most valuable benefits military personnel. If eligible, you can purchase or refinance a home mortgage with no down payment and enjoy excellent rates, with financing available up $424,000.

 

Conventional Loan - A conventional is a mortgage that is not backed by any government agency, such as the FHA or VA., it has fixed terms rates. With most lenders, the down payment is based on credit score and may require as much as 20% down.