A look inside USDA home loans

, Written by Kyle Aevermann, Posted: Tue, February 4 2014 at 5:52 PM, Updated: Wed, February 5 2014 at 3:09 AM

Buying and owning a home is just apart of the American dream.

But saving enough money for a down payment can be a struggle for many families.

Take Robert and Heather Smith for example. They both work full time jobs, saving where they can.

Their goal is to one day buy a home for their growing family.

The only problem is actually saving enough money for a down payment.

"We work everyday, just to try to survive," Smith says.

Part of surviving includes paying a good chunk of money for rent.

Buyer specialist, Danielle West with Keller Williams says renting can often be more expensive than actually owning a home.

"A lot of people don't realize they can buy," West says.

With that in mind, the Smith's decided to see if they could quality to buy a home.

"We went in looking for a F.H.A. loan which is usually 3 percent down, and they pre qualified us for USDA home loan which is zero percent down," Smith explains.

The US Department of Agriculture, which is known for being responsible for things like farming and food, is also in charge of expanding rural development.

Part of that means they offer meaning they are helping people find and buy homes, with loans for no money down.

"It's very similar to most other loans in most aspects except for it's a zero down program," said mortgage broker Trent Nistler.

Nistler says USDA home loans do have certain restrictions based on the home's location and the loan amount but they are accessible to most people.

"Rural housing, isn't just for rural properties. It's anywhere outside of urban grown boundaries," said Nistler.

Currently in southern Oregon, that means you can buy a home anywhere except for Medford, Central Point, and Grants Pass.

"It's kind of tricky when it says USDA, it makes it sounds like you buy a farm, but it's actually the opposite. You can't have the outbuildings or a chicken coop, or a barn or anything you can profit from," West explains.

That's no problem for the Smith's who will be saving hundreds of dollars a month, owning their home.

"To think it's possible to own a home to have an investment, it's pretty incredible," said Smith.

Experts who we spoke with say it's best to find a lender who can help you to find out if you qualify for a no money down program.

You can also learn more by visiting the official USDA Home Loan website, by clicking here.

What do you think? Sound off on our Facebook page and on Twitter, or leave a comment below.

About the Author

Kyle Aevermann

Kyle Aevermann reports weekdays and anchors NBC 5 News Weekends. He joined NBC 5 News in March 2012 as a morning producer and reporter. Prior to joining KOBI, Kyle interned at KISL-FM on Catalina Island, CA. He was also a regular contributor to CNN's citizen journalism program.

Originally from the Chicago-land area, Kyle moved to the Pacific Northwest in 2009 to work in the social media industry. Kyle enjoys hiking, traveling, learning about cultures, and has a serious love for food.

Catch Kyle anchoring weekends on NBC 5 News at 6pm and 11pm.

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