The United States Department of Agriculture (USDA) is for more than choice meats. The USDA also offers a unique type of home loan that allows specific borrowers to purchase a home with no money down.
It is one of the only loans, other than the VA loan, where an individual can qualify for a loan that covers 100% of the property value, with no down payment at all.
USDA home loans are one of the most unique home loans options on the market. But keep in mind that not every home, and certainly not every borrower is going to qualify for this type of loan.
Who Qualifies for USDA Home Loans?
There are several eligibility considerations that affect who can apply and receive a home loan from the USDA.
In order to buy a home with a USDA loan, the home must be in a location the USDA has marked as a “rural development area,” though areas classified as “rural” can actually include towns and cities. The homeowner must also qualify under income limits (although this specific amount varies by county, so please contact our loan originators for more information).
There are other requirements as well, such as a credit score of over 640, good credit history, US citizenship, and steady income history for 24 months. The home must not cost more than 29% of your monthly income, and must meet USDA size requirements.
There is also a maximum amount the home can cost for the loan to cover it – although again, this is determined by the county.
Benefits of a USDA Home Loan
For those who qualify, a USDA home loan can be highly beneficial. It allows you to purchase a home for no down payment.
The purpose of these home loans is to make life better in rural areas, and the USDA mortgages are a powerful step to help those with lower incomes in rural areas improve the quality of their lives and the values of homes around them.
For more information about USDA home mortgages, or to find out about your eligibility for these and other no/low money down loans, contact me today!

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