USDA home mortgage programAnother Home Mortgage Option

The beginning of April we told you about Fannie Mae’s incentive of giving home buyer’s 3.5% of the purchase price to use towards their down payment. If you did not qualify or have enough time to find a home, here’s another 100% financing mortgage option. If the seller agrees to cover closing costs or the lender agrees to put them into the loan amount, a qualified buyer can purchase a home with no money out of pocket. What a deal!


This plan is provided by the U.S. Department of Agriculture’s (USDA) Single Family Housing Guaranteed Loan Program and is focused on getting people to move out of the cities and into rural areas so one primary aspect of the plan is that the house has to be located outside of a city or in a town with a population less than 20,000 people. (Maybe it’s time for some fresh air?)

Another great aspect of this plan is that your credit score is not the focal point of deciding to loan the money or not. What is more important is that you have a verifiable, steady income for at least 2 years that is high enough to make the payments (three years for self-employed people). Take 29% of your gross income and generally that will be the highest payment you will be allowed. You also must be at least three years past filing for bankruptcy. To apply without using your credit score expect to show at least four major bills (rent, utilities, credit card, etc.) in which you have not paid later than 30 days past due within the last twelve months.

Just about any type of single family home qualifies too. You can look at an existing home or have one built for you. Other home types that qualify are eligible condos and new manufactured homes.

Contact a lender (search “home mortgage lenders in [insert area you want to purchase]”) and ask if they participate in the USDA’s Single Family Housing Guaranteed Loan Program. You may need to try several lenders before you find one. After you get prequalified for the loan, contact a realtor to begin showing you houses or look in the local classified or online ( under real estate for sale.

All told, this is an exceptional program for qualified low-income people whether they have a disability or not who would like to own their own piece of terra firma. If you have been able to use one of our suggestions, drop us a line and a picture of your new home at This email address is being protected from spambots. You need JavaScript enabled to view it.. We would love to post it on our website and/or Facebook.


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Disclaimer: Obviously we are not part of Fannie Mae or the USDA. We receive no money or other compensation from either organization. If you have a disability you have enough problems and we love being able to tell you about things that may make your life better!

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