USDA Zero-Down Financing
USDA can finance 100% of an eligible purchase, but “zero down” does not always mean literally zero dollars needed for the transaction.
100% financing
USDA's Guaranteed program allows qualifying buyers to finance up to 100% of an eligible property's purchase transaction, subject to appraisal, program and lender requirements.
Closing costs still exist
Prepaids, closing costs and other settlement charges still exist. USDA permits certain eligible closing costs and reasonable customary expenses to be included when the transaction and value support it.
No traditional down payment requirement
The core benefit is that an eligible borrower does not need a standard 3%, 3.5%, 5% or 20% down payment simply because of the USDA program.
Official USDA baseline
USDA Guaranteed Loan Program · HB-1-3555 Technical Handbook
USDA rules and income/property eligibility can change. The current USDA eligibility site, handbook, GUS result and approved lender requirements control the actual transaction.