Buying a Home with No Money Down – USDA Rural Home Mortgage

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It started out an honest quest. Rent on our apartment was set to increase dramatically and on a regular basis for the foreseeable future. After everything we saw and experienced with the housing crisis.. was there still a no money down mortgage solution?

The answer to this question could potentially:

  • Allow us to fix our monthly living expenses
  • Give us a tax break. Which we missed out on due to relocating last year.
  • Provide a sense of permanence (which a garage full of our belongings in our apartment was not providing).

My Wife did some internet research and found the USDA Home Mortgage program. This allows a buyer to purchase a home for no money down with closing costs included with one caveat. The home has to be in a “rural” area.

Now, when I think of a rural home, I think of something like this

USDA Rural Home Loan

But, the reality of a “rural” home can be something like one in a master planned community with amenities like this. (Yes, really.)


What is USDA Rural Home Mortgage?

The USDA describes the guaranteed loan program as follows:

USDA Rural Development has partnered with local and national lenders to help them extend 100% financing opportunities to rural individuals and families. Benefits of the Guaranteed Loan Program include:

  • No down payment required – 100% financing available
  • No maximum purchase price limit
  • Fixed 30 year rates
  • Not limited to first time homebuyers
  • Flexible credit and qualifying guidelines
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A Word of Warning

It took 45 days from offer to closing. Your loan could be processed quicker or more slowly. This is after all a government, agency self funded program. And there were hundreds of pages of letters, forms and other documents. Some of these had to be revised more than once. This was a total buzzkill to the excitement of a “new to us home”. But, we did finally close.

Checking the Status of USDA Rural Home Loan?

Something that was very frustrating was being in loop as far as what loan package was being processed by the USDA on a given day. My Wife found a phone number for Texas. Apparently, each state has it’s own number to check the status of loan processing.

So, to get your search started off right use the query below (adding in your state):

Single Family Guaranteed Rural Housing Conditional Commitment Status Updates are available daily by calling


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