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
  • 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

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
  • 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


More than 100 million Americans are live in a USDA-eligible area. Want to explore your eligibility? Let’s connect!