No Down Payment for Tennessee Home Loans, USDA Rural Development

Mortgage and Lending with Van Dyk Mortgage NMLS:98535,Corp 3035

USDA still offers their no down payment home loans are available for most areas of the state of Tennessee.  The " RD " is a great loan, in fact it is one of the only loan programs that has remain virtually unchanged through the recent upheavel in the mortgage industry.

 The program has relaxed credit score requirements when compared with conventional loan programs, as the minimum score requirement is only 620.  This allows for buyers that have had credit issues in the past, but has overcome them, to qualify for the purchase of a new home sooner.

Besides the greater opportunity for borrowers with past credit issues, the RD loan allows for a much cheaper cost when purchasing a new home.  Besides the obvious benefit of being able to buy a home without a down payment, buyers do not have to worrry about increasing their mortgage payment but $100 or more to pay for mortgage insurance;RD loans do not have mortgage insurance. (update: USDA loans now require a nominal monthly mortgage insurance.  About 1/4 of the mortgage insurance required on FHA Loans)

Another characteristic of RD loans that sets them apart from conventional and FHA loans is that the seller can pay the buyers closing costs.  This means that with no money needed for down payment AND no money needed for closing cost, the buyer CAN get into a home with virtually no money out of pocket.

As wonderful as this program is, it does have its limitations.  It has income restrictions and geopraphic restrictions.  This means that buyers may make TOO MUCH money to qualify for the program (  Click_Here to check the income limits in your area) and that once the buyer qualifies for a RD loan, they must then find a home that is in a RD eligible area. 

The map Click Here  provides an overview of the areas in the state of Tennessee that are inelible for RD home loans.  The areas that are shaded darker will be the inelibile areas while the majority of the map that is a lighter shade would be eligible for RD financing.


Click Here For a more detailed county by county description of the ineligible areas  


Updated Jan 2013

The USDA program has added the requirment for monthly mortgage insurance to their loan program. The monthly amount is $33.34 per month on a $100,000 home.   While this is disappointing, it is important to note that the program still requires zero down payment.

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Specializing in Government Home Loans.  FHA, VA and  USDA Rural Development


Alabama: License # 52935

Birmingham, Montgomery, Mobile, Huntsville, Tuscaloosa, Hoover, Dothan, Decatur, Auburn, Gadseden, Florence, Bessemer, Madison, Prichard, Phenix City, Homewood, Vestavia Hills

Georgia: License # 36362

Albany, Atlanta, Augusta, Alpharetta, Athens, Canton,  Columbus, Dalton, Dunwoody, Johns Creek, Macon, Marietta, Roswell, Sandy Springs, Savannah, Smyrna, Valdosta, Warner Robbins

Kentucky: License # MC305583

Louisville, Lexington, Bowling Green, Owensboro, Covington, Hopkinsville, Richmond, Florence, Elizabethtown, Frankfort, Paducah, Independence, Danville

Louisiana: License # 35486

Alexandria, Baton Rouge, Bossier City, Central, Denham Springs, Hammond, Houma, Kenner, Lafayette, Lake Charles, Livingston,  Marrero, Metaire, Monroe, New Iberia, New Roads New Orleans, Prairieville, Shreveport, Slidell, Walker

Tennessee:  License # 108470

Bartlett, Bristol, Chattanooga, Clarksville, Cleveland, Collierville, Columbia, Cookeville, Crossville, Fairfield Glade, Franklin, Germantown, Goodlesttsville, Hendersonville, Jackson, Jamestown, Johnson City, Karns, Kingsport, Knoxville, Memphis, Morristown, Murfreesboro, Nashville, Oakridge, Smyrna, Spring City


Abilene, Amarillo, Arlington, Austin, Beaumont, Brownsville, Carrollton, Cypress, Dallas, Denton,  El Paso,  Ft. Worth, Frisco, Garland,  Grand Prairie, Houston, Irving, Killeen,  Lubbock, McAllen, McKinney, Mesquite, Midland, Pasadena, Plano, San Antonio, Tyler, Waco, Wichita Falls


We offer VA Loans,  FHA Loans, USDA Loans, and more across Alabama, Louisiana, Texas and Tennessee


Bill McDonald NMLS # 95835

VanDyk Mortgage NMLS # 3035


Bill McDonald-VanDyk Mortgage

705 Gate Ln Suite 202 104

Knoxville, TN 37909

(865) 686-8711

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no down payment
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Brian Skaar
VanDyk Mortgage - VA, FHA, Conventional, VA Jumbo, Jumbo, Purchase Loans, & Refinance, Direct Lender - San Diego, CA
VA, Jumbo, FHA & Conv Direct Lender (760) 752-4480

These are great loans.  I wish we could offer them in more parts of the country,  Tennesee is fortunate to have many areas that qualify for these.  Very Affordable, low down payment loans.  

Sep 02, 2010 04:58 AM #1
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Bill McDonald

VA, USDA, FHA Government Loans - (865) 686-8711
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