You Don't Need a Down Payment to Buy a Home — USDA Loans Offer 100% Financing

A USDA loan is a government-backed mortgage that allows eligible buyers to finance a home with 100% financing and no down payment, as long as the property is in a USDA-eligible rural or suburban area and the borrower's income falls within local limits.

With 100% financing, the loan covers the entire purchase price of the home, so you don't need to bring a down payment to closing. The USDA guarantees a portion of the loan to the lender, which offsets the added risk of not requiring money down.

Not necessarily. USDA eligibility maps include many smaller cities and suburban communities, not just farmland. Several areas around Redding and Shasta County qualify, so it's worth checking a specific address before assuming it doesn't fit.

Von Mortgage generally looks for a credit score of 640 or higher for USDA loans, though individual circumstances and compensating factors can sometimes allow for flexibility. Ask us to review your specific credit profile.

Yes. USDA loans are designed for moderate-income households, so your total household income generally can't exceed 115% of the area median income for the county where the home is located. Limits vary by location and household size.

USDA loans include an upfront guarantee fee, typically around 1% of the loan amount, plus a smaller annual fee of about 0.35% that's built into your monthly payment. This takes the place of traditional mortgage insurance and is usually lower than FHA mortgage insurance.

If you already have a USDA loan, you may be able to refinance it later through a USDA Streamlined Assist Refinance, which can lower your rate with reduced documentation and, in many cases, no new appraisal required.

Single-family homes and some approved condos or new-construction properties can qualify, as long as the home will be your primary residence and it's located inside a USDA-eligible area. You can check a specific address on the USDA eligibility map to confirm.

Most USDA loans close within 30 to 45 days, similar to other loan types, though timing can vary depending on the local USDA office's current review volume. Pete and his team track this closely so you always know where things stand.