It's Rural Development,and you would be surprised at what is classified as "rural". For example,all of Slidell,LA where I live falls under RD and we are definitely suburban,not rural in the least. The only condition is that it must be a single family home & not priced at over $170K.

Dana, what is RD?

...randy

Randy:

RD is also 100% financing.

Beth, you know I have heard there are more options now than before with rehab, repair allowance, etc. but like other's told you, be sure you get referred to a good local mortgage broker/banker from people you trust.

Hi Beth!

No... To my knowledge, USDA is one of the only two loan products out there these days (along with VA) that is a true 100% loan, i.e., requiring zero money down. But it also has limitations in areas and income of the buyer. As far as I know, there are NO allowances on USDA loans for rehab or property improvements.

There is an FHA loan that can do that, but FHA loans require 3.5% down.

Hope that helps!

...randy