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  1. Is It Time to Refinance? Here Are The Steps You Need to Take
  2. Saving For Your First Home? Here’s Everything You Need to Know
  3. Options, Options, Options
  4. A Personalized Approach
  5. Credit Confusion
  6. Building Your Dream Home
  7. Tax Time in Wisconsin
  8. Don’t Let Intimidation Get in the Way of Home Ownership
  9. Setting Financial Goals for the New Year
  10. Buying a home after bankruptcy

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USDA No Money Down Home Loan

May 15, 2017

The United States Department of Agriculture (USDA) sets lending guidelines for this mortgage type, which is why it is also called the USDA Rural Development Loan. This type of home loan reduces costs for home buyers in rural and suburban areas.


Qualifying is easier than some other loan types, since the loan doesn’t require a down payment or a higher credit score. This program is for homes within USDA-eligible geographic areas, because the property location is the most important factor for this loan type. The good news is about 97% of United States land is USDA-eligible. Many properties in suburban areas may be eligible. It’s worth checking, even if you think your area is too developed to be considered “rural”.


All loans have fee associated with them in one way or another, but the USDA is incredibly affordable with these changes. The upfront guarantee fee (the fee is typically added to the loan balance so that home buyers do not have to pay it in cash) has been reduced from 2.75% to just 1%. The upfront guarantee fee reduction will drastically reduce the amount financed in the loan. This means lower monthly payments! The USDA is also lowering the monthly fee from .50% to .35%.


This will help more people qualify for purchasing a home, as it will lower their monthly payments, and help with their debt-to-income requirements. People that have been told that they will not qualify for a home purchase because of income or have been waiting to purchase because they are trying to save money for a down payment, may find this drop in charges from the USDA to be just the opportunity they have been waiting for to make home ownership a reality.



Ron Meyer
GSF Mortgage Corporation
300 Patriot Dr.
Little Chute, WI 54140
(920) 788-9608
NMLS #222688 & 1018