100% USDA Financing

by | Aug 20, 2018 | Blog | 0 comments

August, 2018
Believe it or not…there are multiple program options out there that offer 100% financing, NO money down home loans (to eligible borrowers).

Today we’re going to talk about one of the better-known options:

The 100% USDA Financing Program

Why You Need To Know About

100% USDA Financing 

People all over Oregon are feeling the effects of the state’s growing population.  In the real estate & mortgage industry, that growth has had many effects.

Perhaps the most significant side effect has been less housing inventory.  Simply put, there are not enough homes for sale.  And so, the homes that are for sale are getting a lot of interest from buyers.

So now we have a lot of buyers competing for a limited number of homes – especially in & around cities.

This creates more competition.  Competition for one home drives up the sale price.  Competition for multiple homes drives up prices in that area.  This ripple effect ultimately leads to homeownership becoming less affordable for the average buyer.

Enter…USDA Loans

A growing number of homebuyers are looking to avoid the high price, high competition housing markets in Oregon’s largest cities.  And for buyers like that, the 100% USDA Financing Program is the way to go.  It targets homebuyers who prefer to live outside major metro areas.

But remember, there are exceptions to this rule.  There are a handful of targeted areas, in and around cities, where USDA loans are still offered.  See the ‘eligibility’ section below for details.

These USDA loans have a noble mission statement.  They are striving to improve the economy and quality of life in rural America by serving prospective homebuyers deemed to have the greatest need.

Meaning, they target individuals and families that are currently unable to secure a home loan from a traditional source (like a big bank).  They target people who have an adjusted income at or below the ‘low-income’ limit for the area where they live.

But they go one step further.

Not only are they helping people and families, in need of assistance, achieve their goal of homeownership.  They are doing so by guaranteeing each USDA loan against default.  A guarantee of not defaulting comes with some serious benefits.  Such as zero down payment, low rates, and lenient credit requirements.

“USDA loans have a noble mission statement.  They are striving to improve the economy and quality of life in rural America by serving prospective homebuyers deemed to have the greatest need..”


There are a lot of variables when it comes to USDA eligibility.  Certainly too many to cover in this blog post.

There are 3 tiers of the home loan program based on your household’s income.  Importantly to note, the income limits fluctuate depending on where you live.  Plus, the income limits are also adjusted based on the number of people living in the home.

I’m going to avoid getting into the weeds on all the different eligibility rules.  You don’t need to know every detail.  That’s our job as the lender.

Instead, I will just drop a list of links below.  That way you can do as much or as little USDA research as you’d like.

But if I were you…I would spend that time submitting a Pre-Approval Application.  That way we’ll handle all the dirty work.  Then we’ll tell you exactly what homebuyer programs are most valuable for you!

Find out what homebuyer programs are best for you, by submitting a Pre-Approval.  And now our brand new online pre-approval process is faster and easier than ever before.
Try it out!

In Conclusion…

Maybe you’re someone that prefers countryside landscapes over concrete jungles.  And maybe you make a modest but consistent income.  If those traits fit you and/or your family’s situation, then the 100% USDA Financing Program may be the perfect option for you.

It is specifically designed to help make rural homeownership more affordable and accessible.

But don’t be fooled into thinking that all homebuyer programs are limited to rural areas.  Or that they’re limited to people with average-to-low incomes.

There are plenty of homebuyer programs available. Programs for buyers in the heart of the city and in major suburbs across the state.  Believe it or not, there are also some homebuyer programs that have 6-figure income limits.  I even know of one program that has NO income limit!  First-time homebuyers have even more options!

The resources are out there – you just need to make sure that you’re working with a lender that offers a variety of programs.  And remember…if one bank, or lender, or broker…tells you there aren’t any homebuyer programs available to you – run!  They’re not telling you the whole truth.  They may just not offer other programs.  Or they may simply not know about every homebuyer program.  Either way, you need a second opinion.

We specialize in offering the largest selection of homebuyer programs in the Portland area.  Including — cash grants, down payment assistance, tax credits, below-market interest rates, and even programs that are more lenient on student loan debt.


Don’t miss your chance, start your Pre-Approval today to find out what programs are most valuable for you.

Or contact me directly, and we’ll make a plan for you!

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