A USDA loan down payment is a type of government-backed loan that requires no down payment from the borrower. These loans are available to eligible low- and moderate-income borrowers in rural areas. USDA loans are insured by the United States Department of Agriculture (USDA) and are made by approved lenders.
USDA loans offer several benefits to borrowers, including:
A credit score is a number that lenders use to assess the creditworthiness of a potential borrower. It is based on your credit history, which includes factors such as your payment history, the amount of debt you have, and the length of your credit history. A higher credit score indicates that you are a lower risk to lenders, and you may be eligible for lower interest rates and better loan terms.
For a USDA loan, a credit score of at least 640 is typically required. However, some lenders may be willing to approve loans for borrowers with credit scores as low as 620. If you have a lower credit score, you may be required to pay a higher interest rate or make a larger down payment.