USDA loan (or rural development loan) can be a good option for borrowers who have little available savings. They offer zero down payments and are usually cheaper than FHA loans. Borrowers will pay an upfront fee as well as ongoing mortgage insurance premiums to the USDA. Typically these have low-interest rates designed for low-income borrowers who meet USDA’s income eligibility requirements. The property must be located within the rural areas designated by The Rural Housing Service, part of the U.S. Department of Agriculture (USDA)