How To Buy A Home With Zero Down With A USDA Loan

Dated: 01/13/2020

Views: 135

How To Buy A Home With Zero Down With A USDA Loan


Can I buy a home with 0% down?

Yes, you can with either a USDA or a VA Loan. Today we’re going to talk about a USDA loan.

The United States Department of Agriculture actually offers what’s called a Rural Housing Loan and it’s available to buyers in suburban neighborhoods. 

Now, the loan doesn’t come from the USDA – it comes from your lender but the USDA “guarantees” the loan, which means the USDA will purchase the debt from the lender and take on responsibility for the loan if you fail to pay.

To qualify for a USDA loan, the property must be in a qualified rural area. 

You can check to see if the area you're looking qualifies HERE --> https://www.usdaloans.com/program/property-eligibility/

At a minimum, you must be:

  • A US Citizen or permanent resident

  • Have a credit score over 640

  • Have stable income

  • 12 months of no late payments

  • The home must be a primary residence, and

  • Your household income is equal to or less than 115% of the area median income, or the exact center between the high and low income in the area.

You can check the income levels in your location HERE --> https://www.usdaloans.com/tools/income-limits/

USDA loans can be used for new construction, manufactured or modular homes, condos and townhomes, as well as to purchase a short sale or foreclosure.

If you have any other questions about the USDA loan program or if you want my help finding your first, or next, home, reach out to me at ryan@HomeSmartFirstClassRealty.com or call me at (508) 297-7270.

Latest Blog Posts

5 Upsides To Downsizing Your Home

5 Upsides to Downsizing Your Home If you’ve been thinking about shrinking your square footage and moving into a smaller home, you’re probably well-aware of the obvious advantages: There’s

Read More

3 Tips For Showing Your Home In The Winter

3 Tips For Showing Your Home In The WinterDid you know that Winter is actually one of the BEST times to sell your home?  But where to start?Hi, I’m Ryan Cook, Broker/Owner of HomeSmart

Read More

5 Tips For Winterizing Your Home For Sale

5 Tips For Winterizing Your Home For SaleSelling your home in the winter could be the greatest strategy to get the best return on your investment.  But there’s still some work to do

Read More

Who Is Freddie Mac

Who Is Freddie Mac?Freddie Mac, also known as Federal Home Loan Mortgage Corporation (FHLMC), is a quasi-government agency that guarantees loans for low- and moderate-income borrowers.A few key

Read More