ZERO DOWN USDA Rural Development Loan

USDA Rural Development Loans
USDA home loans have been helping rural Americans become homeowners since 1949 and is an amazing program to help homeowners purchase with ZERO down!  The Guaranteed USDA Rural Housing program agrees to guarantee a loan so the lending institutions can help buyers while incurring less risk.USDA Program highlights include:

  • Zero down option:  100% of the sale price up to 102% of the appraised value.  It is listed up to 102% of the value because USDA has a 2% funding fee that can be included in the loan amount.  The loan can also include closing costs, pre-paid items as well.  At closing the buyer is able to get up to the amount of their earnest money back at closing.  A true zero down purchase program.
  • 0.4% Yearly fee paid monthly –  Effective 10/01/2012
  • Rural development program not necessarily ‘rural':  We recommend checking the eligibility map for properties on the fringe of metropolitan areas.  Often times clients are pleasantly surprised to find the areas of eligibility closer to the metro than they thought. Please click here to check your property is eligible.
  • Moderate income limits apply (see below) Effective 01/22/2013
  • No prepayment penalties
  • USDA Rural Development is able to work in accordance with City down payment assistance programs.  By incorporating the DPA programs it allows buyers to eliminate seller paid closing costs.

Income Qualification Information:

The most accurate way to check your income for qualification is to use the USDA Income Calculator. The calculator on USDA’s website is the best because it is based on area income limits minus any deduction you can take to offset your income. A common income deduction is for child care expenses.

Ineligible Areas for USDA Rural Housing loans:

if you know the address of a property that you are interested in, you can go to USDA’s website to determine if a specific address is eligible (click the accept button and then type in the address). If the system is unable to determine eligibility based on the address you entered, that doesn’t’t mean it is not’t eligible. It just means the system couldn’t’t find the address, so it is unable to determine eligibility. At this point, you can contact us

We work very closely with the rural development offices in Minnesota and are able to pre-approve buyers in as little as 30 minutes.  We consider ourselves USDA experts.


We would love to help you make your home buying dreams come true with a ZERO DOWN USDA Rural Development Loan. Apply Today.

Ben Coulter

100% USDA rural development loan for the entire state of Minnesota.