USDA Loans: A Zero-Down Option Many Buyers Miss

USDA loans can be one of the best-kept secrets for buyers who want 0% down—but they come with location and income rules that not everyone realizes.

What is a USDA Loan?

A USDA loan is backed by the U.S. Department of Agriculture and is designed to encourage homeownership in eligible areas. Many people hear “USDA” and assume farmland. In reality, many suburban and edge-of-metro areas can qualify.

USDA Can Be Great For

• Buyers with limited down payment who want 0% down
• Buyers shopping in eligible areas near the metro
• Households within income limits for the area

The Two Big USDA Requirements

1. Location eligibility: the property must be in an eligible area
2. Income eligibility: household income must fall within limits (varies by area and household size)

Pros

• 0% down financing options
• Often competitive rates
• Designed for affordability

Cons / Watch-outs

• Not every area qualifies (and eligibility can be very specific)
• Income caps can disqualify some households
• Fees exist (similar concept to mortgage insurance, depending on the USDA program specifics)

Myths vs Facts

Myth: “USDA loans are only for farms.”
Fact: Many eligible properties are in suburban or semi-rural neighborhoods, not farmland.

Myth: “USDA takes too long to close.”
Fact: USDA can close smoothly, but timelines depend on lender process and required approvals.

Myth: “I’ll never qualify because I live near San Antonio.”
Fact: You might be surprised—some areas just outside the city can qualify.

Local Tip (Our Area)

If you’re open to areas near New Braunfels, Marion, parts of Comal and Guadalupe County, or other edge markets, USDA may be worth checking early in your search. We can help you shop with a strategy so you don’t waste time on ineligible locations.

Next Step

If you want to explore USDA:

• We can help narrow your search to areas that are more likely to fit
• We can connect you with lenders who are experienced with USDA files
• We can create a plan that matches your timeline and budget

Zero down isn’t common—USDA is one of the few paths where it can be real.