A United States Department of Agriculture (USDA) mortgage is likewise doesn’t require a down payment. Even applicants with a scarred credit history will usually get a USDA loan, as the credit stipulations attached to this type of loan are fairly easy to fulfill. Should you fall below the acceptable threshold, though, you may need to take on a 10% down payment.
To be eligible for a USDA loan, the home must be in a federally recognized and approved rural or semi-rural area. On top of that, if your household income is more than 115% of the area’s median income, you may be eliminated from contention.