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Home Mortgage Pre Approval Online usda home loans Requirements The biggest lure of USDA home loans compared with other mortgage products. lenders say a USDA mortgage can be a good alternative to an FHA loan because the cash requirements and insurance premiums.A mortgage pre-approval is a written statement from a lender that signifies a home-buyers qualification for a specific home loan. Income, credit score, and debt are just some of the factors that go into the pre-approval process.