Backed by the USDA, rural Loans are similar to VA and FHA, except they are only available in selective rural areas and have income limitations. USDA is a 102% loan with no down payment required and does not need monthly mortgage insurance. The USDA loan is not limited to first time homebuyers. The seller can contribute up to 6% of the purchase price towards buyers closing and prepaid costs. Financing is available as a 30-year fixed only, for single-family residences and condos only.