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Can You Buy a House With No Money Down? The USDA "$900 Close" Truth

Independent USDA buyer guide · Updated 2026-08-22

The Guaranteed program can permit up to 100% financing of an eligible appraised value, so an eligible transaction may not require a down payment. That is not the same as zero cash: earnest money, inspections, appraisal handling, insurance, taxes, prepaids, repairs, and other property-specific items vary. Build the number from the contract, quotes, and Loan Estimate rather than a national cash range.

USDA.properties is independent — not a lender and not affiliated with USDA Rural Development — so there's no incentive here to make the number look smaller than it is. Here's what zero-down actually means for your bank account.

Zero down is real

USDA and VA are the only two major programs that finance the full purchase price with no required down payment. On a $300,000 home, a USDA buyer borrows the whole $300,000 (plus the financed upfront guarantee fee). There's no 3.5% like FHA or 3–20% like conventional. That's the genuine headline, and it's why USDA is the go-to for buyers with steady income but little saved. See the down-payment rules for the full picture.

The cash you still need

Zero down removes the biggest line, not every line. Here's the cash a USDA buyer typically spends before closing:

Two things soften that number. Your earnest money is credited back to you at closing — it's not an extra cost, it's a deposit. And if you negotiate seller-paid closing costs, some of these can be reimbursed or offset at the table. The well/septic tests only apply to rural properties on private systems, which many USDA homes are. (See property requirements.)

The "$900 close" — where it comes from

You'll see claims that USDA buyers close for as little as $900. That number is real, but it's the best-case corner of the range, not the average. Here's the honest version of when it happens.

It works when all of these line up:

• The seller agrees to pay closing costs — up to USDA's 6% cap (how concessions work).
• The home is priced under its appraised value, so there's room for the concession to fit.
• It's a slow enough market that a motivated seller will accept a concession-heavy offer.
• Your earnest money gets credited back, leaving only inspection and appraisal as true out-of-pocket.

When those conditions hold, remaining cash at the closing table may be lower. When they do not—a competitive market, valuation constraint, repair issue, or seller who will not contribute—the amount may be materially higher. Replace any example with the lender's Loan Estimate, settlement figures, contract deposits, and written third-party quotes.

How the 6% seller concession gets you near zero

USDA permits seller or other interested-party contributions up to 6% of the sale price for eligible loan purposes. That is a ceiling, not a recommended request or assurance that all costs will be covered. Contributions cannot exceed actual eligible costs or produce cash to the borrower. The upfront guarantee fee may be financed or paid. Use the lender's Loan Estimate to calculate the real cash requirement.

That's the whole strategy for a near-zero-out-of-pocket USDA purchase: finance the fee, let the seller cover closing costs, and keep the pre-close cash small. The offer language that makes it happen is in how to write a USDA offer. Just remember the caveat from the closing-cost breakdown — a concession can't exceed your actual costs, and the appraisal has to support the price.

The bottom line

USDA can provide a no-required-down-payment path, but plan separately for deposits, inspections, prepaids, closing costs, and property-specific work. Seller contributions are negotiable, limited to eligible actual costs, and never guaranteed. The full walkthrough is in how to buy a home with a USDA loan, and the fillable cash-to-close worksheet is in The USDA Home Buyer Playbook. Your transaction numbers come from an approved lender's Loan Estimate and settlement disclosures.

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