There is no down payment required and it is funded directly by the Government, unlike the VA loan which is only guaranteed by the Government. This would be a good alternative for our veterans,
It takes somewhere between 4 to 6 months to get through the qualification process and loan closing. The biggest delay is usually funding that is allocated based on the budget and the governments fiscal year. The year ends Sept 30th at which time new funds must be allocated. Sometimes that can take a month or two.
These are just the basic credit guidelines. If your credit score is over 640 the underwriter can waive many of these guidelines. There is more to qualifying than just your credit. You can visit our website at http://www.usda-rural-development-direct-mortgage.com to review more guideline.