Zero Down Payment Homes with USDA Loans

Find homes with the Zero Down Payment USDA Home Loan.

Find homes with the Zero Down Payment USDA Home Loan.

One of the most difficult steps for many potential homes buyers is coming up with the down payment to buy a home.  There are low down payment options such as a FHA mortgage where the down payment is only 3.5%.  Now you can even get a 3% down conventional loan.

With the median home sale prices in most areas being between $150,000 and $200,000 that still factors out to be $5000 to $7000.  Often potential buyers simply don’t have that money and could use a Zero Down Payment Loan for their home purchase.


Some cities and loan programs are available from time to time in the Twin Cities area where you can come real close to a zero down loan.  However, the most used ZERO Down payment loan I see is the USDA Rural Development loan.

To get that loan you have to be buying a home in a more rural area.  Thus your looking at areas like Isanti County (Cambridge, Isanti, Braham and surrounding areas).  Your looking at the northern part of Sherburne County ( Zimmerman, Princeton and the surrounding areas). In Chisago County (Chisago City, parts of Stacy, North Branch and then areas like Harris, Stanchfield).

As you go further out you can get the loan too.  Thus Mille Lacs, Kanabec, Pine County pretty much all work. Parts of Wright, Stearns and Benton county still work for the USDA loan too.

Zero Down Payment Home Search and Guidelines

The best way to begin your home search for a ZERO down payment home is get pre approved with a mortgage company that works with USDA home loans.  You can go through a mortgage broker, or for example in Cambridge MN there is a USDA Rural Development office and you can get pre approved directly through them.

You have to qualify based on credit and debt-to-income guidelines.  These guidelines are fairly close to FHA loans, but not totally the same.

Not all properties work for this loan type even if they are in the areas that offer the zero down payment loans. The home has to be in good enough shape, the home can’t have income generating outbuildings, and also you normally can’t have livestock for a zero down USDA home loan. Please check with the lender with the specific guidelines as they do change.

Set up your own search on this website:

If you have questions or want a specific search set up for your home buying needs contact Chuck Carstensen with RE/MAX Results at:

Call (612) 290-3809

Script by Dagon Design