USDA Loans, Zero Down In Rural Areas

USDA loans are a strong option if you want zero down and are open to buying in an eligible area. They come with income limits and tighter guidelines, but the combination of low rates and low mortgage insurance can make the payment very attractive.

Fast facts

• Typical minimum credit score: Many approvals work best around 640 and higher, although we can sometimes go lower depending on the file.
• Typical down payment: 0 percent down for eligible buyers.
• Property types:1 unit single family primary residences in USDA approved areas.
• Manufactured homes: USDA manufactured rules can get weird and they have been changing a lot the last few years. Some manufactured homes can work with unique age and scenario requirements, so ask us about your direct scenario.
• Rate types and terms: Most USDA buyers use a 30 year fixed. ARM and shorter term options exist, but are less common for this program.

Best fit for you if

• You are buying in a USDA eligible town or rural area.
• Your income fits under the USDA limit for your county and household size.
• You want zero down and fit the guidelines. VA is the only better program out there.

Big perks

• 0 percent down for qualified buyers.
• Very low monthly mortgage insurance.
• Modest upfront guarantee fee compared with other government loans.
• Often the best priced loan next to VA when you qualify.

Keep in mind

• Not all addresses qualify. We check the USDA map for you.
• There are income limits and sometimes household size rules.
• You cannot have 20% Down in your assets and use this program
• USDA has the strictest debt to income ratio of all the options we discuss. It is the best priced loan in many cases, but the strict debt to income rules can be a disqualifier even when the payment itself looks fine.