USDA loans are a great option for first-time home buyers, as they provide access to affordable mortgages and do not require the homeowner to pay for private mortgage insurance (PMI). This is one of the main benefits of USDA loans, which often have lower rates and more favorable terms than traditional mortgages.

The USDA loan program is designed to help low-income households become homeowners. To qualify, households must make no more than 115 percent of the area median income and must buy a property within a USDA-designated rural area. The process is straightforward, with fixed rate loans available with up to 30-year terms and no down payment required.

Another great benefit of USDA loans is that they do not require the borrower to pay for private mortgage insurance, or PMI. PMI is a type of insurance the lender purchases to protect them from the borrower's potential failure to pay off the loan. On traditional mortgages, the borrower typically has to pay for PMI if they borrow more than 80 percent of the home's value, which can add up to thousands of dollars over the life of the loan. The fact that USDA loans do not require PMI means that qualified borrowers can save a lot of money in the long run