Buying

How to Buy a Home in Oklahoma with $0 Down (Even If You’re Not a Veteran)

May 17, 2025

Thinking You Need to Be a Veteran to Buy a Home with $0 Down? Think Again.

If you’ve been dreaming about buying a home but think you can’t because you’re not a veteran or you don’t have a big down payment, let’s talk about the USDA loan.

That’s right, there’s a government-backed mortgage program that allows eligible buyers in many parts of Oklahoma to buy a home with zero down. It’s called the USDA loan, and it might be a better fit for you than you think.

USDA loans are backed by the United States Department of Agriculture. While the USDA is known for farming and food safety, it also helps support housing in rural and smaller communities. These loans were created to boost homeownership in areas that are underpopulated or economically disadvantaged. Over time, places like Shawnee that used to be considered rural have grown, but were grandfathered into the program, so yes, you can still qualify even if it doesn’t feel rural at all.

There’s also a common myth that USDA loans are just for farms or large acreages. Not true. You don’t have to be a farmer, and the property can’t be part of an income-producing agricultural operation. If you’re looking for a true farm loan, lenders like AgCredit are better suited for that kind of financing. There’s no minimum acreage requirement for USDA loans, and while there’s no hard cap either, the land can’t be excessive. The value of the home must come primarily from the house itself, not the land.

So what are the real benefits?

One of the biggest perks of a USDA loan is zero down payment. Another major advantage is reduced mortgage insurance. Anytime you put less than 20% down, you’re likely paying some kind of mortgage insurance. With USDA, it’s called a guarantee fee, and it’s significantly lower than what you’d pay with an FHA or low-down-payment conventional loan. In many cases, it’s around 35% less than FHA and can be 55% less than conventional.

USDA loans are also known for having flexible credit guidelines. You don’t always need traditional credit like a credit card or auto loan. Some lenders allow non-traditional credit, like rent or utility payment history. Past credit issues like medical collections or even bankruptcies might not automatically disqualify you. The required credit score can vary by lender, and USDA loans typically don’t require cash reserves after closing. Of course, guidelines can change and lenders vary, so having a local lender who understands the USDA process is key.

This loan is a great fit for more than just first-time buyers. It works well for buyers with steady income but limited savings, midlife movers looking to rightsize, or people who are tired of renting but not sure they’re ready for a big down payment. As long as your household income falls within the limits, you could qualify.

So, what kinds of homes can you buy with a USDA loan?

  • Existing homes in good condition
  • Manufactured homes (though the requirements are a little more specific)
  • New construction, but only with a lender who offers USDA’s construction-to-permanent loan

If you’re planning to build, that’s a conversation worth having early.

On the flip side, there are properties that won’t qualify:

  • Second homes or rental properties
  • Homes that need major repairs
  • Raw land, unless you’re building immediately and working with a USDA-approved lender who offers construction financing

In Central Oklahoma, qualifying areas include all of Pottawatomie County (yes, including all of Shawnee), most of Lincoln and Seminole counties, and parts of Cleveland County. Just because a property has a rural vibe doesn’t mean it qualifies. And just because it’s in Shawnee doesn’t mean it’s excluded either. The best way to know? Use the USDA property eligibility map or let me run a quick address check for you.

Here are a few common questions I get:

Can my spouse apply without me? Yes, if they qualify individually. But keep in mind that USDA looks at total household income when determining eligibility.

Do I have to be a first-time buyer? Not at all.

Can I build a home? Yes, but only with a lender who offers USDA construction loans, and they’re pretty rare.

Want to dive deeper into these topics in video form?

Whether you’re just getting started, planning a big life move, or ready to rightsize into your next chapter, I’m here to help you love where you live.

Learn more about buying a home in Central Oklahoma: soldonshawnee.com/buying

Questions? Let’s connect:
📞 405-585-6580
📧 Steve@SoldonShawnee.com