Inside USDA Loans – Buy Your Home with 0% Down
Blog posted On December 29, 2022
Buying a home with no upfront payment sounds nice, but many hopeful owners don’t think they qualify for a 0% down loan. Perhaps the biggest misconception about 0% down USDA Loans is that they are only for farms and rural areas. Surprisingly, over 95% of U.S. landmass is eligible for USDA financing. Many USDA buyers live in the suburbs. Here are more facts about USDA Loans that might pleasantly surprise you.
The Good Stuff
- 0% down
- Low interest
- No costly mortgage insurance
- Can cover costs for ‘essential household equipment’ such as wall-to-wall carpeting, ovens, ranges, refrigerators, washers, dryers, heating, and cooling equipment if the equipment is conveyed with the dwelling
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- Can be used for purchase or refi
- Financing for full purchase, construction, rehabilitation, or home improvements
- Can cover site preparation costs, including grading, foundation plantings, seeding or sod installation, trees, walks, fences and driveways
- No acreage limits
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The Eligibility Stuff
- Income no higher than 115% AMI
- No credit requirement (but applicants need to demonstrate good debt management)
- 30-year fixed-rate mortgages only
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- Primary residences only
- Applicants need to be a U.S. Citizen, U.S. non-citizen national or Qualified Alien
- Must be in a USDA-approved area
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More than 100 million Americans are live in a USDA-eligible area. Want to explore your eligibility? Let’s connect!
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