The long lost cousin of Fannie Mae, Freddie Mac, and FHA programs is USDA. Yes, the Department of Agriculture will guarantee a 30-year loan with no down payment for rural buyers with “reasonable credit.” It’s called the USDA Rural Development Single Family Housing Guaranteed Loan Program.
So what’s the problem? Well, the goal of the USDA loan is to get families to move to rural areas. The issue is now some of those rural areas have experienced so much growth that they are now considered suburbs thus eliminating the no-down-payment loan option for some areas of Virginia.
If you were considering a rural area and you would like to know if the area you were thinking of moving to: Click here to see if a particular property is eligible for a USDA loan.
Credit: VABuzz article by Andrew Kantor