Buying a home in US? How $0-down USDA mortgage works and who can qualify

Buying a home in the US has become increasingly difficult as prices, mortgage costs and insurance expenses rise, but an often-overlooked government-backed loan allows eligible buyers to purchase a home with no down payment.The USDA-backed mortgage is available in areas that meet the programme's eligibility rules, and about 97% of US land mass falls within eligible areas, according to Ashley Harris, director of homebuyer education at Neighbors Bank, in an interview with New York Post. The figure does not mean 97% of Americans qualify, as borrowers must also meet income and other requirements.The programme is particularly notable because buyers do not necessarily have to live in what looks like a traditional rural area. Eligibility is largely determined by population density and specific geographic criteria.How the $0-down USDA mortgage worksThe USDA guaranteed loan allows eligible buyers to finance the entire purchase price of a home, eliminating the conventional down-payment requirement.