USDA Rural Development $0 Down Home Loan Program

✨ USDA Rural Development Loan — A First-Time Buyer’s Favorite ✨

Buying your first home doesn’t have to mean draining your savings. With the USDA Rural Development Loan, you can:

• 🏡 Buy a home with no money down
   
• 💵 Finance closing costs up to 101% of the appraised value
   
• 📅 Lock in a 30-year fixed rate loan (no prepayment penalties!)
   
• 🙌 Come to closing with little to no money out-of-pocket
   
• 🤝 Have the seller contribute up to 6% of the purchase price toward closing costs
   
• ⭐ Work with one of the top USDA lenders in Southeastern Ohio

USDA Rural Development Home Requirements

When buying a home with a USDA loan, the property must meet certain basic standards:

• Heating: Central heating system with vents in all rooms
   
• Roof: At least 2 years of estimated life remaining
   
• Paint: All chipping or peeling paint must be repaired
   
• Electrical & Plumbing: Systems must be functional
   
• Safety: All electrical switches, outlets, and junction boxes must have covers
   
• Walls & Ceilings: No holes or major damage
   
• Floors: Must have coverings; no exposed sub-floors
   
• Water Supply: If no public water, a water test and well inspection are required
   
• Septic System: Inspection required only if the appraiser requests it
   
• Termites: Inspection required only if the appraiser requests it

Think you don’t qualify for a $0 down USDA Rural Development loan? Think again! Let’s bust some myths:

Myth: You can’t have previously owned or currently own a home.
Fact: If your family has outgrown your current home—or you’ve got a job transfer over 60 miles away—you may still qualify for a new RD loan.

Myth: You can’t have more than 20% down in liquid assets.
Fact: There’s no limit on liquid assets anymore.

Myth: You can’t have more than 5 acres.
Fact: Properties with up to 20 acres are now eligible.

Myth: There can’t be any pole buildings or sheds on the property.
Fact: Pole buildings and sheds are perfectly fine.

Myth: You can’t have past or present negative credit.
Fact: Minimum credit scores of 620 can qualify. You can also be 3 years out of Chapter 7 Bankruptcy—or even immediately considered after Chapter 13 if all payments are complete.

Before you write off the $0 down USDA RD program, give the mortgage pros at Concorde Mortgage Company a call. With years of experience navigating the RD program, we’ll help you separate fact from fiction and get you into your dream home.
 

620 to 639 Credit Scores – Manual Underwriting

• No late payments – Previous 12 Months
• No Accounts in Collections (except Medical )
• Strict Ratio Requirements – 29 /41 – (Housing Expense/Total Debt)
• Must have adequate reserves for PITI payments
  

640 Plus Credit Score
   

• 1 yr employment history – no employment gaps over 30 days
  New employment – Must be past any probationary period and have (1) month of  Paystubs
• 34/45 Ratios (Housing Expense/Total Debt) Maximum – If everything else is good
• Federal CAIVERS report – Must be clear of any Federal Debt Defaults – Any previous RD loan default, even if past 10 yrs, will not qualify for a new RD loan.
• Collection Accounts – Payment may be required – Depends on other account factors
• Bankruptcy – Must be (3) yrs from date of BK discharge
• Foreclosure – Must be (3) yrs from property transfer date from borrower to other party.
• Open Liens/Judgments – Must be paid unless payment plan is in place. Must have proof of 12 months of payments.
• Charge-offs – Must show $ 0 Balance.   

Based on number of people living in home.
              1-4                        5+
         $ 119,850            $158,250