USDA Announces No Down Payment Home Loan Program

With the help of the U.S. Department of Agriculture (USDA) Rural Development’s No Down Payment home loan programs, dreams of homeownership may come true. Stan Gruszynski, state director, said, “While some take owning a home for granted, there are many people throughout the state for whom home ownership remains a challenge. USDA Rural Development can help.”

USDA Rural Development’s Rural Housing Direct Home Loan Program offers 100 percent financing with no down payment required for low and lower income individuals or families at a 3.75 percent interest rate. These loans are made directly through USDA Rural Development and are offered for a period of 30-38 years. The repayment on the loan may be subsidized by the federal government, based on the household income. Direct loans may be made for the purchase of an existing home or new home construction.

Loans made under this program are to individuals and families with income that does not exceed 80 percent of the median income level of the county where they live and who would not otherwise qualify for a conventional loan. County income limits for the programs are posted on the USDA Rural Development Wisconsin website at rurdev.usda.gov.