Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply.
This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice.
USDA Mortgage Insurance
Most borrowers aren't excited about the idea of paying monthly MI (mortgage insurance), but it's a reality for almost any buyer who doesn't put 20% down on their mortgage loan. One of the many benefits of the USDA Rural Home Loan is that the factor used for monthly MI is lower than that of FHA and most Conventional loans. For the majority of FHA loans (there are instances when it's slightly lower) the factor used for MI is .85%. Conventional loans don't use the flat rate system like government-backed loans. The MI for those loans is determined by LTV (loan-to-value), credit score, and loan amount. Conversely, USDA uses a factor of .50 on all loans. The low monthly mortgage insurance coupled with $0 down are some of the reasons why USDA loans are so popular.