USDA 0% Down Home Loans
- Location: Must live in an eligible rural area
- Credit score: Usually 640 or higher
- Income limits: 115% of the area median income
- Employment: Steady, two-year work history (some exceptions)
- Debt-to-income ratio: Usually 41% or less
- Property: Single-family primary residence
- Loan-to-value: Up to 100% (zero down)
- Mortgage insurance: Required on all USDA loans
- Other guidelines: U.S. resident, clean credit history
What does this program do?
The Section 502 Guaranteed Loan Program assists approved lenders in providing low- and moderate-income households the opportunity to own adequate, modest, decent, safe and sanitary dwellings as their primary residence in eligible rural areas. Eligible applicants may purchase, build, rehabilitate, improve or relocate a dwelling in an eligible rural area with 100% financing. The program provides a 90% loan note guarantee to approved lenders in order to reduce the risk of extending 100% loans to eligible rural homebuyers – so no money down for those who qualify!
Who may apply for this program?
Applicants must:
Utilizing this USDA's Eligibility Site you can enter a specific address for determination or just search the map to review general eligible areas.
Why does Rural Development do this?
This program helps lenders work with low- and moderate-income households living in rural areas to make homeownership a reality. Providing affordable homeownership opportunities promotes prosperity, which in turn creates thriving communities and improves the quality of life in rural areas.
All Rates, terms, down payments, DTIs and other requirements are subject to approved credit, full documentation, and approval. Everyone has unique credit, income and circumstances that effect every aspect of a loan. All programs, info, and requirements are subject to change.
The Section 502 Guaranteed Loan Program assists approved lenders in providing low- and moderate-income households the opportunity to own adequate, modest, decent, safe and sanitary dwellings as their primary residence in eligible rural areas. Eligible applicants may purchase, build, rehabilitate, improve or relocate a dwelling in an eligible rural area with 100% financing. The program provides a 90% loan note guarantee to approved lenders in order to reduce the risk of extending 100% loans to eligible rural homebuyers – so no money down for those who qualify!
Who may apply for this program?
Applicants must:
- Meet income-eligibility (cannot exceed 115% of median household income)
- Agree to personally occupy the dwelling as their primary residence
- Be a U.S. Citizen, U.S. non-citizen national or Qualified Alien
Utilizing this USDA's Eligibility Site you can enter a specific address for determination or just search the map to review general eligible areas.
Why does Rural Development do this?
This program helps lenders work with low- and moderate-income households living in rural areas to make homeownership a reality. Providing affordable homeownership opportunities promotes prosperity, which in turn creates thriving communities and improves the quality of life in rural areas.
All Rates, terms, down payments, DTIs and other requirements are subject to approved credit, full documentation, and approval. Everyone has unique credit, income and circumstances that effect every aspect of a loan. All programs, info, and requirements are subject to change.
