USDA Rural Development Loans

 

Borrowers in eligible rural areas can purchase with no down payment.

 

For income-eligible borrowers who purchase a home in an eligible rural area, USDA Rural Development loans offer a myriad of benefits. While these loans require no down payment, the USDA charges an upfront guaranty fee (which is usually financed) and a modest annual guaranty fee (paid through the monthly payment). A unique feature of the program is that the loan may exceed the sales price up to the amount of the property's appraised value to finance some or all of the borrower’s closing costs. These loans also allow financing of costs to perform repairs that can be performed in a short time after closing.