USDA No Money Down - Purchase

$0 Down Requirement USDA

Most people’s dreams of owning a home are unfulfilled for the biggest down payment. If you do not have a sufficient downpayment, select a plot of land in a rural or suburban area to purchase, and then you can qualify for a USDA loan.

Since USDA offers a 0% down payment, you will be able to buy a house without paying any money.

You must be thinking that your dream of buying a house will come true. Your dream will come true when you can meet the requirements of USDA.

What are the benefits of a 0% down payment?

The USDA home loan is specifically designed to help low- and moderate-income people in rural and suburban areas buy affordable housing. Also to develop these communities economically by providing financial assistance.

While it’s not free, it does offer discounts and multiple benefits.

If you can meet the eligibility requirements of the USDA loan, you will be eligible for a 0% down payment.

  • The borrower must be a resident of the United States. The borrower will qualify for the loan even if he is a non-citizen or holds a green card.
  • Borrowers who do not qualify for conventional loans i.e. are unable to pay a 20% downpayment.
  • Buying a home in a qualified area according to USDA location requirements.
  • The house must be the primary residence of the borrower.

If you can meet these qualifications, you must qualify for a USDA loan.

Will you get a loan if you are unable to meet all the qualifications?

It depends on whether you can meet the requirements and your lender. The most important requirement of a USDA loan is stable income and location.

Income Limit:

You will not qualify for a loan if your total household income exceeds the income limit in your area. USDA loans are specifically designed for low- and middle-income borrowers who may not be able to afford a home. So the USDA has set income limits, which the borrower must meet.

You will receive a USDA loan if your family income does not exceed 115% of the area. This includes your income as well as the adult income in your home. Simply put, if you have 4 members in your household, and 3 of them are adults, their income will be included. For example, the income limit of a family of 4 members is $ 91,900.

Contact your USDA-approved lender to make sure your income meets the USDA income limit requirements. Also, when you apply for a loan, the lender will monitor your income to see if you are eligible for the loan.


Your home must be in a USDA-approved area. This loan is only designed for certain areas including rural and suburban areas. Use the USDA Property Eligibility Map to determine if the selected home is eligible. This map is very easy to use, you just need to type the address, and then you can know yes or no.

If you already meet the two requirements then you will have to go through some more processes. The lender will check your credit score and its history and determine if you can meet the USDA loan requirements. Most lenders prefer a credit score of at least 640. However, if your credit score is less than this then you can qualify for the loan but some requirements have to be met.

The lender will also want to see your employment history and debt-to-income ratio (DTI). Your DTI cannot be more than 41%. However, the flexibility of the USDA loan requirements allows you to qualify by meeting certain requirements if you have a low credit score and a high DTI.

However, if you have a good credit score and low DTI, you can qualify very quickly and even get the benefits of USDA.

Are there any other costs involved with the USDA loan?

Each loan has a closing cost which is 3-5% of the loan amount.

There are USDA loans and closing costs but a little different than other loans. Just because you don’t have enough cash to pay the closing costs doesn’t mean you won’t be able to buy a home.

There are several ways to pay off the closing costs of a USDA loan:

  • Roll your closing costs into the loan.
  • Request a gift fund to friends or relatives for closing costs.
  • Apply for closing costs funds to state or local agencies.

USDA pays down 0% on the loan, but there are some advance costs. This cost can be easily paid by you in various ways. After all, if you do not have enough savings to pay the down payment, you can buy a house and this is the main advantage of a 0% down payment.

Related Articles

USDA No Money Down - Purchase
$0 Down Requirement USDA Most people’s dreams of owning a home are unfulfilled for the biggest down payment. If you...
USDA Loans Explained
USDA loan requirements The USDA believes that helping people in rural areas to own a home will enable them to...
USDA Loan Calculator
USDA Loan Calculator USDA home loan is known as a 0% down payment loan and it fulfils the dream of...
USDA Land Loan
USDA land loan If you do not have a safe and secure home and you want to make a safe...
USDA loan income limits
USDA loan income limits The purpose of the USDA loan is to provide financial assistance to homeless people to purchase...