USDA Guaranteed Loans Require No Down Payment for Home Purchase

More families and individuals may be eligible to become homeowners with the help of a USDA guaranteed home loan.

The federal government agrees to "guarantee" a loan, therefore lending institutions can help buyers while incurring less risk.

Through this program, low and moderate-income people can qualify for mortgages even without a down payment.

TO BE ELIGIBLE:

1. Applicants must have adequate and dependable income.

2. Be a U.S. Citizen, qualified alien, or be legally admitted to the USA for permanent residence.

3. Have an adjusted annual household income that does not exceed the moderate income limit established for that area.

4. Applicants may be eligible to make adjustments to gross income, such as annual child care expenses and $480 per child, in order to qualify.

5. Have a suitable credit history.

6. Have repayment ability based on total debt divided by gross monthly income must be equal to, or less than, 41 percent.