USDA loans are designed for rural and suburban homebuyers with low to moderate incomes. These loans offer 100% financing, meaning no down payment is required. USDA loans also come with low-interest rates and flexible credit requirements, making them an attractive option for eligible borrowers.

- Comparative advantages: Designed for low-to-moderate-income borrowers in rural areas. Offers 100% financing, meaning no down payment is required.
- Absolute advantages: Lower interest rates compared to conventional loans. Flexible credit guidelines and reduced mortgage insurance costs.