USDA Rural Development’s guaranteed mortgage program. With this program, you apply to a participating lender (a bank) to obtain financing, and USDA Rural Development provides the private mortgage insurance. The premium for this private mortgage insurance is paid in one lump sum at the loan closing, versus you paying it every month. This, thereby, increases the amount of mortgage money for which you can qualify. Fundamentally, this is a loan backed up by the oomph of the Federal Government.
