A USDA loan is a 100% financing government insured loan great for borrowers living in rural areas. Since this loan is area specific, please check with us to make sure the area you’re looking in qualifies. To qualify for this loan, annual household income must not exceed 115% of the annual median income for that area. USDA loans are 30 year fixed rate notes that can also be done with a middle credit score as low as 580, with other compensating factors.  USDA loans have a lower mortgage insurance premium than FHA loans, which lowers your monthly payment. For those that qualify, you can also use the MCC tax credit with a USDA loan, which allows the homebuyer to claim up to $2,000 annually as a tax credit toward their federal income tax liability and qualify for about $20,000 more home.