The USDA is a great loan and perhaps the best choice if you and the property can qualify. One big drawback to the program is it is in limited geographic areas. However, if you find a house in an approved location the benefits of these loans are excellent. First, USDA does not require a down payment. Additionally, if the house appraises higher than the sales price you can finance in your closing costs. This is the only loan that allows you to do this. The second major benefit of USDA is that there is no monthly mortgage insurance. On a $200,000 loan this will save you over $80 per months compared to an FHA loan. Credit requirements with USDA are can be slightly more difficult than FHA but are typically easier compared against standard conventional financing. No down payment, rolling in closing costs and no PMI—all great features of the USDA home loan.