VA loans USDA Loans and federal programs - A number of federal programs help qualified individuals purchase homes with no down payment. The VA loan (Department of Veterans Affairs) program is one of the most prominent programs. The VA loan guarantees the loans of qualified active and retired members of the military service and their unmarried widows. With this loan guarantee in place, lenders provide over 100 percent home financing. The VA funding fee is usually incorporated into the purchase price and added to the monthly mortgage payments. The USDA (United States Department of Agriculture) Rural Development program's mission is "to improve the quality of life in rural areas." Their Housing and Community Facilities Programs offer zero down payment home loans to qualified individuals purchasing and living in homes in eligible (rural) areas.
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