Rural and many suburban areas around Colorado qualify for one of the most overlooked mortgage programs available: a loan that requires no down payment at all. If you’re eyeing a home outside the densest part of a metro area, a USDA loan is worth a serious look.
A USDA loan is a mortgage backed by the U.S. Department of Agriculture, designed to encourage homeownership in eligible rural and suburban areas. Despite the name, “rural” is defined more broadly than most people expect. Plenty of communities within a reasonable drive of Denver and other Colorado metro areas still qualify. The program allows 100% financing, meaning no down payment is required for eligible buyers.
USDA loans come with two main eligibility requirements: the property’s location and the borrower’s income.
You may be a good fit if:
Eligibility here comes down to two separate checks, and both need to clear before you move forward.
Property eligibility is based on USDA-defined boundaries, which are more generous than the word “rural” suggests. Many communities just outside the Denver metro core fall inside the eligible zone. Income eligibility is based on your household’s total income relative to the area median, adjusted for household size. Chris can check both in a matter of minutes with your target address and household details, so there’s no need to guess before you start house hunting.
USDA loans eliminate the down payment, but they do carry two fees that fund the program:
Compared to FHA mortgage insurance, USDA’s ongoing fee is typically lower, which keeps the monthly payment more manageable even with zero down.
Both programs serve buyers who don’t have a large down payment saved, but they work differently. FHA loans are available anywhere and require 3.5% down. USDA loans require no down payment at all but are limited to eligible rural and suburban areas and come with income caps that FHA loans don’t have.
If you’re buying in an area that qualifies for USDA financing and your income fits within the limits, it will typically be the lower-cost option between the two, thanks to the smaller ongoing fee and the absence of any down payment requirement.
He’ll check your target property and household income against USDA guidelines upfront, so you know where you stand before you fall in love with a house that might not qualify.
