RD Loans are ideal for borrowers who are flexible on geographical location and looking to buy a home with no money down. The location requirements are set by the USDA and are in “non-urban” areas. Oftentimes, this includes villages and small towns near bigger cities. There are no lot size restrictions, however, the property must be single-family housing and owner occupied. This program allows a buyer to borrow up to 102% of the appraised value of a property, thereby eliminating the need for a down payment, and there is no limit on how much the seller can contribute to your closing costs. Non-traditional credit is also allowed. Loans are offered as a 30 year term, fixed rate mortgage. Debt to income ratios for this program require that your house payment be less than 29% of your income, and your total debt should not exceed 41% of your income.