USDA Rural Development Mortgage

A Zero-Down Loan that Makes Home Buying Easier

With the USDA Rural Development mortgage option, you can borrow 100% of the appraised value of the home. This means you don’t have to come up with the down payment. This loan is insured by the United States Department of Agriculture to promote homeownership in less-dense communities.

The program is unique in that if the house appraises for more than the purchase price, you can roll the cost of the appraiser-required repairs into the loan amount. You may build, rehabilitate, improve or relocate a dwelling in an eligible rural area.

The main requirement for a USDA Rural Development Mortgage is that the property must fall within certain geographical areas, outside the city limits of major metropolitan centers. Many people do not realize that properties in almost every area of the country outside major metropolitan areas can be purchased with a USDA Loan.

What is an Eligible Area?

Click here for USDA Rural Development eligible addresses(on this page click "Single Family Housing Direct" under "Property Eligibility")

Advantages of a USDA Rural Development Mortgage:

  • Intended for standard homes, not farms or acreage
  • No down payment required
  • Low monthly mortgage insurance
  • More lenient credit score requirements in comparison to conventional loans
  • The only zero-down loan on the market besides the VA mortgage

Eligibility varies based on area, your income, credit history, and number of dependents claimed so it’s important that you contact of our loan consultants to see if you qualify.

*Not available for manufactured homes. Zero down payment and other figures shown are for informational purposes only and are not intended as an advertisement or commitment to lend. Not all borrowers will qualify; contact us for a specific quote and more information on fees and terms. NMLS #110139. A division of AmeriFirst Financial Corporation