Home Loan Guarantee
Similar to other government backed loan programs such as FHA and VA Loans, USDA loans are insured by the US Department of Agriculture. Since this type of loan is backed by the federal government, lenders can assume less risk that the buyer will default on their loan. This gives borrowers with low to moderate income access to low interest rates and zero down payment options.
Borrowers will still be responsible for insurance premiums however the premium for USDA loans are currently less than FHA loans.
The Home Loan Guarantee program allows you to finance closing costs should the home appraisal be higher than the purchase price. Your loan amount can be equal to or less than the home’s appraised value.
Home Improvement Loans and Grants
This program provides loans to very-low-income homeowners to repair or upgrade their existing home. Additionally, applicants 62 years or age or older may qualify for a grant that does not need to be repaid.