There are conventional home loan providers as well as state and federal home assistance programs like the Federal Housing Administration and the Veterans Affairs. Theres also the USDA Home Loan Program for those who are in the low to moderately low-income brackets living in suburban and rural areas. The point is, you need to explore your options and study them well before making any commitments to take out a home loan.
A Rural Development Loan, or also It allows prospective buyers to finance their home without having to save up for a down payment or other costs associated with closing the sale. Moreover, there is no limit for the loan, nor do you have to buy mortgage insurance (PMI).
The USDA is not really funding these loans; instead, it guarantees them so that the interest rates can be fixed low.