USDA LOANS

The main advantages of USDA loans include 100% financing (no down payment required), competitive interest rates, and flexible credit requirements. These loans are often referred to as "rural development loans." 

One potential drawback is the property location requirement, as USDA loans are limited to eligible rural and suburban areas. Additionally, USDA loans may have income limits depending on the location and family size. 

You can check the USDA's Property Eligibility website or consult with a USDA-approved lender to confirm whether a specific property qualifies for a USDA loan. 

USDA loans require a mortgage insurance premium (MIP) but at a lower cost compared to FHA loans or conventional loans with private mortgage insurance (PMI). 

USDA loans can be used for both existing home purchases and new construction, as long as the property meets USDA eligibility criteria. 

While USDA loans have more lenient credit requirements than conventional loans, most lenders prefer a credit score of 640 or higher. However, some may consider borrowers with lower scores on a case-by-case basis.