USDA Home Loans
100% financing for eligible rural and suburban properties in Colorado. No down payment required. Perfect for mountain town buyers and small community residents who qualify.
Zero Down for Colorado's Rural Communities
The USDA Rural Development Guaranteed Housing Loan Program offers 100% financing — meaning zero down payment — for eligible buyers purchasing homes in qualifying rural and suburban areas. In Colorado, this program covers far more geography than most buyers assume, including many bedroom communities, mountain towns, and smaller cities that are considered "rural" by USDA standards.
USDA loans come in two varieties: Guaranteed Loans (offered through approved lenders like TLO Home Loans) and Direct Loans (offered directly by USDA for very low-income buyers). The Guaranteed Loan is by far the most common and is what Zach originates.
Eligibility Requirements
- Property Location: The property must be in a USDA-eligible rural area. Zach will check any property address for eligibility instantly.
- Income Limits: Household income cannot exceed 115% of the area median income (AMI) for your county. In most Colorado rural counties, limits are generous.
- Primary Residence: Must be your primary residence — not an investment property or vacation home.
- Credit Score: Generally 640+ for streamlined processing, though Zach works with lenders who can go lower with compensating factors.
- Debt-to-Income Ratio: Typically up to 41% back-end DTI, with flexibility for strong credit profiles.
USDA Loan Costs
Unlike true "no cost" programs, USDA loans include two forms of mortgage insurance: an upfront guarantee fee (currently 1% of the loan amount, rolled into the loan) and an annual fee (currently 0.35% annually, paid monthly). Even with these fees, USDA loans often have lower monthly payments than FHA loans for eligible buyers.
Is Your Property Eligible?
Many Colorado communities qualify — including parts of Pueblo County, Fremont County, Moffat County, and dozens of mountain towns. Call Zach with any address and get an instant answer.
Check Property EligibilityWhy USDA Might Be Your Best Option
Zero Down Payment
Finance 100% of the home purchase price — keep your savings for moving costs, renovations, or emergency reserves.
Low Annual Mortgage Insurance
USDA's annual fee (0.35%) is significantly lower than FHA's MIP (0.55%), resulting in meaningful monthly savings.
Competitive Fixed Rates
USDA loans offer competitive 30-year fixed rates similar to conventional loans, without requiring a large down payment.
Closing Costs Can Be Financed
If the home appraises above the purchase price, closing costs can often be rolled into the loan amount.
Colorado Rural Coverage
More Colorado communities qualify than buyers expect. Many growing bedroom communities and small towns are USDA-eligible.
Refinance Available
USDA offers a streamline refinance program for existing USDA loan holders to reduce their rate with minimal documentation.