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$0 Down USDA Mortgages

If you meet income limits you may be able to buy a home with $0 down.


USDA Loans may allow you to qualify for a mortgage with no down payment.  Check out the USDA Single Family Housing Guaranteed Loan Program.

What is a USDA home loan?

The United States Department of Agriculture, USDA, administers the program but does not actually loan money. Similar to loans backed by the Department of Veterans Affairs, VA, or Federal Housing Administration, FHA, these loans are guaranteed/insured by the USDA. Private lenders still loan money to the home buyer but they will do so with $0 down knowing that the USDA will cover losses if the borrower is unable to pay.

This allows lenders to assume less risk, and as a result they are okay requiring less money down.

Who can use the USDA program?

Contrary to its name, the USDA loan is not only available for those in an agricultural setting. The USDA loan is designed to help “low and moderate income households have the opportunity to own adequate, modest, decent, safe and sanitary dwellings as their primary residence in eligible rural areas.”

To use the USDA loan, applicants must meet income requirements and be purchasing a home for their own primary use in an eligible area. Potential homeowners can look up each property’s address to see if it qualifies or talk to a lender about using a USDA loan in their area. The loan can be used for new homes, existing homes, and even homes that need some renovations.

If coming up with a sizable down payment is holding you back from your dreams of home ownership, the USDA loan may be just the answer you are looking for.

USDA Key Points

  • Purchase your home with as little as 0% down payment.
  • 30 year fixed rates.
  • 1% upfront USDA guarantee fee
  • .35% monthly USDA guarantee fee
  • USDA loans are governed by the U.S. Department of Agriculture.
  • Pay your mortgage off at any time without pre-payment penalties.

Qualification Requirements

  • Household income limits apply and are based on location.
  • Only available in certain areas.  All of SW Colorado qualifies.
  • Buy a primary single family home.
  • Refinance up to 100% of your primary home’s value if you already have a USDA mortgage

**Montezuma Mortgage is not affiliated with or acting on behalf of or at the direction of FHA, VA, USDA or the Federal Government.

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