USDA Loans: Zero-Down Financing for Rural and Suburban Buyers
USDA loans, backed by the U.S. Department of Agriculture, are designed to promote homeownership in eligible rural and some suburban areas. Despite the name, "rural" is defined more broadly than many buyers expect, and includes a surprising number of suburban communities outside major metro cores. The core benefit USDA loans allow eligible buyers to finance up to 100% of the home's value, meaning no down payment is required — similar in that respect to VA loans, but without a military service requirement. Two eligibility requirements that matter most Location: the property must be in a USDA-eligible area. This is checked using an address-lookup tool rather than assumed based on how "rural" an area feels — many properties just outside city limits or in smaller towns qualify. Income limits: USDA loans are meant for low-to-moderate income buyers, so household income must fall under limits set by county and household size. These limits are set relative to...