USDA Loans (rural development loan)

The US Department of Agriculture offers a similar program to the FHA and VA, designed for low- and moderate-income borrowers in rural areas. USDA loans can be a good option for borrowers who have little available savings. They offer zero down payments and are usually cheaper than FHA loans. Borrowers will pay an upfront fee as well as ongoing mortgage insurance premiums to the USDA.

USDA loans can be tougher to qualify for due to income restrictions, loan limits and property location restrictions. Keep in mind these are designed for lower-income and moderate-income borrowers in rural areas.