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USDA Housing Loans Offered with Zero Money Down

Jamie Welch Jaro
Salt Lake City
Release Date

With most of Utah’s counties considered rural, there is no shortage of homes for sale throughout the state. With the help of USDA Rural Development’s home loan programs, rural residents seeking homeownership can achieve that goal with no down payment.

USDA Rural Development offers a variety of programs to purchase, build, or improve a home. With the Single Family Housing Direct Home Loan, also known as the 502 Direct program, USDA offers 100 percent financing with no down payment required for low- and very low-income individuals or families at the current interest rate of 3.25 percent. Loans are made directly by USDA Rural Development and for a period of up to 38 years, depending on the applicant’s income.

In addition to the 502 Direct program, USDA Rural Development also offers a Home Loan Guarantee program, which assists approved lenders in providing low- and moderate-income households the opportunity to own modest, decent, safe, and sanitary homes in rural areas. The program provides a 90 percent loan note guarantee. Applicants may contact an approved lender with questions, who in turn are in regular contact with USDA’s Guaranteed Loan Specialists in Utah.

Loan limits and income eligibility are dependent upon the county where the homebuyer intends to live. County income limits and area eligibility for USDA programs are posted on http://www.rd.usda.gov/ut and by selecting “Check Eligibility”. Utah has seven field offices located throughout the state as well as a state office location in Salt Lake City from which employees administer programs dedicated to rural business, homeownership, and community improvements. Individuals may reach out to any of our offices with questions and contact information is found at http://www.rd.usda.gov/contact-us/state-offices/ut.

Several rural Utah communities have both a shortage of affordable housing and a declining population. An inadequate supply of good quality affordable housing is common factor among rural places suffering business and population loss. USDA Rural Development housing loans are an excellent resource for assuring that rural communities can offer the housing choices needed for community and economic health.

President Obama’s historic investments in rural America have made our rural communities stronger. Under his leadership, these investments in housing, community facilities, businesses and infrastructure have empowered rural America to continue leading the way – strengthening America's economy, small towns and rural communities.