USDA stands for the U.S. Department of Agriculture, the same organization that inspects your meat. USDA Loans are also known as Rural Development Loans. The USDA uses these to promote growth in areas where they want to encourage rural development. It’s just what it sounds like, they are looking to develop rural areas.
When the USDA identifies specific areas they want to work in, they'll offer a loan for those who are interesting in buying. There are some income restrictions and rules to follow, since it is 100% financing* and no down payment, and it’s a good program for those who qualify. If the sellers will pay your closing cost, you can get in for the cost of your appraisal and your inspections. This means you're talking about getting into a house for around a thousand dollars, or even less.
One of the most recent success stories for this type of program is Spring Hill, TN. Several areas in Spring Hill were USDA eligible which has contributed to it’s outstanding growth. Many families from local plants and facilities in the area were able to purchase their homes with the USDA loan, homes they may not have otherwise been able to get if the program wasn’t available.
Whether you are a young family, newlyweds, single and paying rent for a few years, a middle-aged family, or even if you have credit problems, the USDA loan may be an option for you. And you don’t have to be a farmer to qualify! If you want to live in a rural area and help a local community grow, there are several areas all over TN to choose from. Many are even located near metro areas like Chattanooga and Nashville.
To qualify, the property needs to be in an area with less than 20,000 people and located outside of city limits. There are some loan limits depending on the area. The USDA determines these based on the county. Also, the income of the purchasers needs to be below that county’s limit as well. These are all the details I can help you with.
The USDA loan program helps families that once thought their own home was out of a reach, a possible reality. I’m well-versed in USDA loan requirements. Contact me today to see if you qualify for one of these no down payment, 100% financed* loans.

Michael Daugherty
NMLS ID 1233387
*Loan approval and terms are dependent upon borrower’s credit, documented ability to repay, acceptability of collateral property, and IMS underwriting criteria. USDA and VA loan programs allow 100% financing for those who qualify. USDA loans have location restrictions and income limits. For more information on RD loans, including RD eligibility, please visit http://www.rurdev.usda.gov/HSF-About_Guaranteed_Loans.html. VA loans require borrowers to have VA eligibility through Veterans Administration. For more information, please visit www.benefits.va.gov/homeloans.