$0 down loans are still around with the USDA rural housing program

By
Real Estate Agent with RE/MAX DFW Associates-Home II Home Team

We all know that $0 down financing is now practically non-existent.  However, I was very excited to learn recently about a USDA program, called Guaranteed Rural Housing, which offers $0 down financing to buyers.  The advantages to customers are:

  • 100% financing
  • Fixed interest rate
  • No MIP/PMI

The buyers do have to have adequate and dependable income, acceptable credit (although no minum credit score is required), must be a US citizen, and cannot have funds for a 20% down payment loan plus closing and moving expenses.

Here's the catch: the house has to be located in an eligible RURAL area. Our team serves the DFW market, specifically southern Denton county and I did not believe we would have any areas that would be considered "rural" and qualify for this type of financing.  However, I was wrong! Roanoke, Justin, and Highland Village are just a few of the towns that are classified as eligible rural areas!  To check the eligible areas in your county, visit: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do.

Another great advantage to these loans?  Seller concessions are allowed and USDA does not restrict the amount of seller concessions (such as FHA loans which allow contributions to be no more than 3% of sales price). This means we can get our buyers in a home without a down payment, and the seller can contribute significantly to the buyer's closing costs.

Consider these loans for buyers that need to purchase a home but cannot qualify or are ineligible for other loan programs.

For more information about this program, please contact me directly @ 817.430.7132 or visit the USDA Rural Development website. 

Comments (3)

Larry Bettag
Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL
Vice-President of National Production

This is great stuff.  I have LO who works for me and she lives on this stuff.  It's the best thing around.

Nov 19, 2008 03:07 AM
Tracy Williams Pender
Carolina MaxRealty, Inc. - Raleigh, NC
MBA, Knightdale & Raleigh, NC Real Estate

Thanks Jenny!  I'm working with couple now who's interested in using this program.  Having that link will come handy so we'll have an idea of property eligibilty before viewing homes and without constantly calling the LO.

Nov 19, 2008 03:20 AM
Julie Chapman
DR Horton - Ormond Beach, FL
New Homes Sales Ormond, New Smyrna, Daytona Be

It is true and it works...I have 2 in escrow that are USDA Rural Housing Loans and several others have in applications. 

Nov 19, 2008 03:42 AM