Skip To Content

100% Financing Can Still Be Found for 1st Time Home Buyers

Rural development properties

100% financing is pretty much a thing of the past. But there’s still a loan out there that will allow you to get into a home without a lot of cash out of your pocket.

Rural Development Loans

Don’t be fooled by the name. It’s not just for properties out in the country. In the New Orleans metro area, you can use a Rural Development (RD) loan to buy homes in St. Charles, St. Tammany, St. Bernard and Plaquemines Parishes. There are even a couple of small sections of Jefferson Parish that qualify (Waggaman, Avondale). RD loans can be used to purchase existing homes, new construction and even condos.

As with any loan that finances a higher percentage of the purchase price, there are some rules.

  • Must be used to buy your primary residence only
  • Minimum 600 credit score
  • Income guidelines are applied to the entire household, not just the borrower. Currently, the cap is $74,800 for a family of 4.

Some details

  • Upfront PMI (private mortgage insurance) fees are lower than FHA fees, so if the property qualified, this is a less expensive option than FHA financing
  • Average 60 day closing time
  • No downpayment required
  • 30 year fixed loan rate with no pre-payment penalties


Steps to getting a Rural Development Loan

Step 1: Do you meet the income guidelines?

Step 2: Determine property address eligibility

Step 3: Determine the flood zone of the property. If the house is in a flood zone, it must be at or above Base Flood Elevation (requires an elevation certificate from seller)

Need a lender?

Contact us and we will be happy to connect you with a lender that does RD loans.


Looking for the right place in New Orleans to call home? We’ve got them all, right here. Thousands of homes for sale, experienced agents and someone waiting to help you today. Call us at 504-327-5303 or contact us here.

Trackback from your site.

nola broker

New Orleans REALTORS providing home buying, selling, and rental services throughout the metropolitan New Orleans communities.

Leave a Reply


About our blog

Real buying, selling, and renting advice from New Orleans REALTORS