USDA loans are guaranteed by the U.S. Department of Agriculture, so they don't require a down payment or private mortgage insurance. That makes them a great option for first-time homebuyers ...

Mortgage options that require no downpayments include VA and USDA loans while low downpayment programs include FHA loans.

However, you will pay a "guarantee fee," which functions like a mortgage insurance premium. You'll also pay closing costs. The USDA funds direct loans, which are reserved for borrowers with income ...