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USDA Rural Home Loans Offer 100% Financing and No Down Payment

Samantha Evenson
Release Date

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, no required down payment, and no private mortgage insurance fee. 

“Providing affordable homeownership opportunities promotes prosperity, which in turn creates thriving communities,” said Bill Schafer, USDA Rural Development Single Family Housing Director. “By offering favorable terms and rates, USDA is helping more individuals and families become homeowners.”

The program primarily aims at helping low income borrowers seeking to purchase modestly priced homes. Qualification for a USDA home loan is based on household income and eligible properties 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 with a fixed interest rate, which is currently at 3.25 percent. Payment assistance is also available to help make buying a home more affordable. 

North Dakota is also under a pilot program that allows financing for qualified, existing manufactured homes. Manufactured housing units financed under this pilot must have been constructed on or after Jan. 1, 2006, be larger than 400-square-feet and be classified and taxed as real estate. Homes also must be on land owned or to be owned by the applicant and either on a permanent foundation or made so with loan funds.

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.

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 www.rd.usda.gov/nd.