Buy a Home with No Down Payment Using a USDA Loan: Young Family’s Success Story
- By Jim Blackburn
- on
Client Profile
- Names: Brandon & Kayla H.
- Ages: 32 & 29
- Location: Murfreesboro, TN
- Profession(s): HVAC Technician & Preschool Teacher
- Home Type: 3-bed single-family in a USDA-eligible suburb
- Purchase Price: $276,000
- Loan Type: USDA 30-Year Fixed
- Down Payment: $0
- Credit Scores: 692 & 685
The Challenge
Brandon and Kayla had just had their second child and were looking to buy their first home. They had steady income but very little saved for a down payment, especially after hospital bills and moving costs.
They were pre-approved for an FHA loan, but the 3.5% down still felt tight. That’s when their realtor asked if they’d looked into USDA loans for their area.
The Strategy
We checked the USDA eligibility map and confirmed the property they loved qualified. Then we structured a USDA zero-down mortgage with favorable terms:
- 100% financing (no down payment)
- No monthly PMI, just a reduced USDA guarantee fee
- Competitive interest rate for low-to-moderate income
- Seller covered $4,000 in closing costs
- Total out-of-pocket: under $1,200
The Outcome
- They bought a move-in–ready home with zero down
- Monthly mortgage was only $147 more than their old rent
- The house came with a fenced yard and garage—ideal for their growing family
- They’re now building equity instead of paying rising rent
Quote from Kayla:
“We thought buying a home would take years of saving. The USDA loan made it possible with almost no money upfront. It changed everything.”
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