It’s hard to believe that zero down payment programs still exist for people looking to buy a home in the Lynchburg area, but believe it!  Both USDA and VHDA currently offer zero down options for buyers:  For homes in the City of Lynchburg - VHDA.  For homes outside of the City of Lynchburg - USDA.  In this article we are going to focus on USDA home loans.


One of the biggest difficulties many first-time home buyers face is a lack of down payment and the necessary funds for closing costs. However, even with the widespread availability of “no-money-down programs” evaporating in the credit crisis, one national no-down payment program still remains: USDA Rural Development home loans.

Guaranteed by the USDA (United States Department of Agriculture), this program might make you think that you have to buy farmland or live “in the country” to qualify, but this is often not the case. In fact, you might be surprised to see just how many neighborhoods actually do qualify as rural development areas. For this program, the term “rural” really applies to those areas with a lower population or fewer homes, not necessarily those areas and neighborhoods far outside of the city.

There are several benefits of the USDA loan program besides no money down. The program also does not require the large monthly mortgage insurance payment (as FHA does), and the seller is allowed to pay all of your closing costs and pre-paid items up to 6.00% of the total sales price of the property. And while this is great news for first-time home buyers, it’s important to note that you don’t have to be a first-timer to qualify for a USDA loan.

Other than the location of the property you’re seeking to buy, there is one other limitation to this valuable program that you must consider: your income. Luckily, however, these numbers have recently increased to allow more potential buyers to take advantage of this special program.

The USDA program is eligible in many areas. The rule of thumb is any town with less than 20,000 population, but as you read above, there are some exceptions.

To find out more about USDA loans, give us a call. We can have an answer as to whether you qualify for this program in just a few minutes.  You can reach me at (434) 444-7136 or by visiting us online at www.AdamHopkins.Net.

Adam Hopkins, Broker

Hopkins Real Estate Group

(434) 444-7136