There is also another loan option that is out there in certain areas. Itâ€™s called a USDA rural loan. Now what this means is you have to purchase a home in a rural area. I have had several clients buy in mountain house as this is considered rural for now. The other areas are Patterson, Byron, parts of Modesto, parts of Tracy. There is no money down, no private mortgage insurance and depending on the sellers willingness to sell you can even get closing cost paid for.