USDA LOANS
0% Down Payment
A USDA loan is an exceptional option for buyers seeking 100 percent financing outside densely populated cities. Guaranteed by the U.S. Department of Agriculture, the program combines a true no-down-payment structure with below-market mortgage insurance and interest rates that rival, and often beat, conventional pricing.
Who qualifies
Eligibility starts with location: the property must sit inside a USDA-approved rural or suburban census tract. Many outlying communities still qualify, so the boundaries are often closer than you think. Household income also needs to fall within the county’s moderate-income limit; the cap is generous and scales with family size, so plenty of middle-class buyers make the cut. Credit scores in the mid-600s typically breeze through automated approval, but the program can accommodate a bit lower when compensating factors—stable job history, reserves—are present.
Why buyers choose it
With zero down, buyers keep more cash available for moving costs, furnishings, or simply a stronger emergency fund. Monthly mortgage insurance is a fraction of conventional PMI, and there’s a modest upfront guarantee fee that rolls seamlessly into the loan amount. Debt-to-income ratios can stretch into the mid-forties, giving real-world budgets room to qualify, and there’s never a prepayment penalty if you decide to accelerate principal or refinance later.
Property types and use
USDA financing is designed for primary residences only, but within that rule it covers single-family homes, eligible condos, and certain new-construction builds. Acreage is allowed as long as the land is typical for the area and doesn’t carry commercial value. If you wish to buy a fixer, the USDA renovation option can finance both the purchase and the repairs in one loan.
The process
Once your file receives lender approval, it passes to USDA for a final sign-off. With a complete package that extra review usually adds just a few days, and most closings land inside a four-week window. Throughout, I’ll confirm property eligibility, handle income calculations against the county limit, and keep you updated at each milestone.
If you’re looking to maximize affordability without sacrificing rate, the USDA program is a powerful path to homeownership.
Let’s verify your property qualifies and run your zero-down USDA numbers today.
