Most loans require a minimum down payment. This can range anywhere from 3.5 to 20 percent, depending on the financing option you’re interested in and other factors, such as your employment history, credit score and debt-to-income ratio. However, the USDA doesn’t expect borrowers to pay any money down.

USDA loans often offer lower rates than other mortgages, which saves borrowers money as they pay back the loan. When you’re not spending as much money in interest, you’ll have more to utilize for other daily expenses or to invest and use at a later date.

Most conventional lenders look for a credit score of at least 640, however you’ll need something closer to 720 to qualify for the lowest interest rates.

The vast majority of the United States falls within what the USDA considers an eligible, rural area. While the goal is to boost population in non-urban areas, the USDA’s definition of rural areas casts a broad net.

USDA loans don’t have any PMI requirements. “Instead,” USDALoans.com states, “these specialized loans come with both an upfront and annual forms of mortgage insurance. The good news is the costs of USDA mortgage insurance are significantly lower than on other loan products,” such as FHA or conventional loans.