The USDA Home Loan is truly 100% no money down. It is only 1 of 2 loan types that has this feature. The other is the VA Home Loan
The guarantee fee (same concept as mortgage insurance) is much lower than other loan types. Compared to the .85 FHA uses the USDA Loan uses a factor of .50
Flexible credit requirements- The USDA Loan is very forgiving when it comes to credit standards. Alternative credit is even used in some cases.
Seller paid closing costs. On a purchase transaction the seller is allowed to pay up to 6% of the sales price towards the borrowers pre-paids and closing costs. (Usually more than enough to cover everything)
Competitive Rates- Interest rates are typically close to other loan types such as FHA and VA
While the term rural is often associated with the loan it is very common to to see the loan used in areas just outside of major cities.
Borrowers do not have to be first time home buyers to be eligible.
Properties with extra acreage are acceptable
No maximum loan amount
Borrowers can afford more home for less compared to other loan types