I can't see any negatives in the program. Close to 80% of the purchase business I do(I'm a loan originator) is the USDA Guarantee loan. You can do no money down, borrow your closing costs, and not have to pay private mortgage insurance. Our rate usually only runs an 1/8 higher than our conventioal loan with 20% down. Rural properties is defined by population density. Most areas qualify. I am in Illinois and Chicago, Champaign, Bloomington, Rockford, Peoria, Decatur and Springfield are out but pretty much the rest of the state qualifies. The bad new is that USDA is predicting that they will be out of money by the end of April. There is no set date on when or if the fed will allocate more money to the program. I anticipate that they will but don't expect it to be fast. Hard to say what the best bank to go to is. Just find a local one that participates in the program.
Loan originator 10 years