The Real
No Money Down Payment Option for Buyers

There is a lot of hype in the real estate world about no money down programs, but having been in the mortgage business for over 30 years, Andy can assure you that if you want a zero down program with the least strings attatched, USDA is best option.

The USDA No Down Payment Mortgage program, also known as the USDA Rural Development Guaranteed Housing Loan Program, is designed to help eligible home buyers purchase a home in rural areas with no down payment. Here is a step-by-step summary of how the program works for home buyers:


  1.     Check location eligibility: The first step is to determine if you and the property you wish to purchase are eligible for the USDA loan program. Eligibility criteria include income limits, credit score requirements, and property location. The property must be in a designated rural area as per USDA guidelines. You can check eligibility here on the USDA website. –


  1.     Talk to ADR Mortgage about prequalification: Before you start searching for a home, it’s helpful to get pre-qualified for a loan. Once USDA area eligibility is confirmed, either go to or reach out to Andy for guidance through the pre-qualification process.  This helps you understand how much you can afford and shows sellers that you are a serious buyer. During this step, Andy will review your financial information, credit history, and income to provide an estimate of the loan amount you might qualify for.


  1.     Home search: With your pre-qualification in hand, work with a real estate agent experienced in USDA loans to find a suitable property within the eligible rural areas you chose.


  1.     Offer and contract: Once you find a home, make an offer and negotiate the terms of the purchase. When both parties agree, sign a purchase contract that includes a contingency for obtaining a USDA loan.


  1.     Complete Loan application: Work with ADR Mortgage to submit your complete loan application, including all required documents such as pay stubs, tax returns, and bank statements. Andy will verify your information and check your credit.


  1.     Loan processing and underwriting: Andy’s team will process your loan application and order a property appraisal to confirm the value and condition of the home. The underwriter will then review all the documents and appraisal, ensuring everything meets USDA guidelines.


  1.     Loan approval: If your loan is approved, the underwriter will issue a commitment letter, outlining the final terms and conditions of your loan.


  1.     Closing: Once all conditions have been met, you’ll schedule a closing date. At closing, you’ll sign the loan documents, provide any required funds, and take ownership of your new home.


*Remember, Andy is also a real estate agent and can recommend a really good USDA real estate agent. Most real estate agents may not be familiar with USDA, and you want someone that is experienced. For example, if your real estate agent doesn’t know that the seller can pay up to 6% of your total closing costs (and tax and insurance escrows) then you should ask Andy for a recommendation for a real estate agent. 


  1.     Move in: Congratulations! You can now move into your new home purchased through the USDA No Down Payment Mortgage program through ADR Mortgage.

Remember that the entire process can take several weeks to a few months, so it’s important to be patient and stay in close contact with your lender and real estate agent throughout the process.