USDA Home Loan Program offers more credit flexibility in this concerned housing and lending market than traditional lenders do. It also provides low fixed monthly mortgage payments to help low-moderate income households.For those that have a desire to live right outside city limits you should check this program out. You can get 100% financing and no down payment within eligible property areas. You will be surprised how many semi-rural properties fall within the programs eligibility.A large percentage of our country ‘s greatest obstacle to home ownership is the lack in funds for down payment. USDA provides a solution not many know about. It overcomes down payment issues for an individual or family by loaning up to 100% of the appraised value of the property. This eliminates the down payment requirement.The USDA Guaranteed Home Loan program helps low-to-moderate income individuals and families purchase homes. The approval process is fairly easy and fast, and the funds for the program are basically unlimited. Best of all, this loan requires no monthly mortgage insurance, only a 2% up front fee and that can be financed in the loan.The program offers a 30 year fixed rate mortgage and no prepayment penalty. Under the Guaranteed Loan program, it guarantees loans made by private sector lenders. If the borrower defaults the USDA guarantee pays the lender. Borrowers work with the lender and make their monthly mortgage payments to the lender, not the USDA. Borrowers must have a two-year primary employment history and the dependable income must not exceed the moderate-income limit guidelines for the eligible property area.This program offers more lenient qualifying guidelines than traditional mortgages. No minimum credit scores or previous housing history is required. Non-traditional credit is acceptable if no credit is available.The loans can be used on new construction, existing homes, and homes in need of improvements. The rates are very low and repairs to a home may be financed 100%. The repair work on the home must be done by a licensed contractor.There is also help for funds to close. All closing costs and prepaids can be financed by the seller, and 100% gifting is available to borrowers. There are no minimum cash contributions from the borrower.If you have not owned a home in the past three years you can use the USDA home loan and the HR3221 bill to get into a home with no out of pocket money and take up to $7500 off your tax liability.The tax credit must be paid back over a 15yr period at $500 a month interest free starting the following year. Speak to your local lender about the Housing Rescue Plan and HR3221.What does this mean to renters? Based on today’s USDA housing loan rates and average rental costs, people can buy a $175,000 home for basically the same costs they pay in rent. For a personal rent versus own analysis contact a local mortgage consultant. If you have a property you have selected you can verify the USDA program eligibility using the following link or just click to gain further knowledge.