USDA Rural Development Loan Program

Zero down loan programs are few and far between these days, but one that is still available might just be the one that can help you buy your dream home!

The USDA Rural Development Loan Program is designed to stimulate rural development in America. Since a common barrier to owning a home is the lack of funds to make a down payment, the availability of the USDA Rural Development Loan Program makes the reality of owning a home available to a much larger percentage of Americans.


  • No Down Payment
  • 30 year fixed rate
  • 100% financing
  • No monthly mortgage insurance – really, there’s none!
  • No cash reserves are required
  • No cash contribution is required from the borrower
  • Borrowers do not have to be first time homebuyers
  • Credit scores as low as 620 may be accepted
  • Gift funds are accepted with no need to document the source
  • The seller can contribute up to 6% towards closing costs


There are some geographic limitations with this program, so homes must be located in eligible areas. Although the term “rural” brings to mind farms and undeveloped land, it is actually described as being open country with a population of less than 10,000 people, or certain towns and cities with up to 25,000 people.

Not all areas will qualify for this program. We can quickly check your property to see if it is in an area that is covered.


There are household income limits, which are based on the number of people in the household: 1-4 people, and 5-8 people. In San Luis Obispo County, the household income limit is $81,450 for a 1-4 person household, and $107,500 for a 5-8 person household. The income from everyone living in the household is calculated regardless of who is actually going on the loan.

There is no maximum loan amount, as your income limits and debt-to-income ratios will determine what loan amount you will qualify for. And the property being financed has to be a primary, single family residence.

This is just a very brief summary of this exciting program. Please contact our office closest to you for more detailed information, and for a free, no obligation consultation to see if you and your property will qualify! You’ll enjoy our commitment to fast, friendly and efficient service paired with the latest technology to offer the most flexible, affordable pricing possible. Contact Daryl Roe at California Funding to get prequalified today!