USDA Rural Development Guaranteed Loans are designed to assist home buyers that don’t necessarily have the ability to secure other financing due to down payment requirements. In order to be eligible for a USDA Rural Development mortgage the property must be in an eligible area, which can be checked on USDA’s eligibility website. Also, home buyers must be under USDA’s income limits, also found on USDA’s eligibility website. There is NO Downpayment requirement, and in some situations closing costs can be financed as well. USDA’s Rural Development mortgages require a Funding Fee (similar to FHA’s UFMIP) and an Annual Fee that is paid monthly (similar to Private Mortgage Insurance). Generally the monthly fee is considerably less than a comparable Conforming or FHA mortgage. Also, USDA only offers 30 Year Fixed Rates.