USDA Rural Home Loans Offer 100% Financing

Samantha Evenson
North Dakota
Release Date
Jul 15, 2015

The U.S. Department of Agriculture (USDA) Rural Development has financing available for home loans to rural North Dakota residents. The Single Family Housing Direct Loan program offers 100 percent financing with no down payment. 

“Homeownership is important as it provides a strong foundation for financial security,” said Bill Davis, USDA Rural Development acting state director. “We are encouraging potential homebuyers to check out our housing programs. USDA wants to assist individuals and families in becoming successful homeowners that will grow vibrant rural communities.”

Since the creation of USDA’s single-family housing programs in 1949, USDA has helped more than 3 million rural residents across the county obtain the American dream of homeownership. In North Dakota, USDA Rural Development has directly financed 246 homes since 2009.

The program primarily aims at helping lower-income borrowers seeking to purchase modestly priced homes. Qualification for a USDA home loan is based on household income and property eligibility, which must be located in an area with a population of 35,000 or less. A borrower may use the loan to purchase an existing dwelling or for new home construction. The loan can be made for over a period of 30 to 38 years at a reasonable interest rate, which is currently 3.25 percent. Payment assistance is also available to help make buying a home more affordable. The assistance is a type of subsidy that is determined by the adjusted family income to reduce the mortgage payment for a limited time.

For further information on USDA Rural Development’s Direct Home Loan program or for a free pre-qualification, call USDA Rural Development at (701) 530-2037 or visit

Listed below are additional USDA Rural Development programs that support rural homeownership:
•    Home loan guarantees: USDA partners with private sector lenders to back a loan for moderate-income homebuyers.
•    Home repair loans and grants: Used to help rural homeowners make improvements or repairs, which may include removing health and safety hazards or making homes accessible for people with disabilities.