Zero‑Down In Oconto? A Guide To USDA Eligibility

What if you could buy a home in Oconto with no money down? If saving for a down payment is the only thing holding you back, USDA financing may be the key. In this guide, you’ll learn how USDA loans work, which Oconto addresses may qualify, what income and property rules apply, and how to verify everything before you write an offer. Let’s dive in.

What zero down with USDA means

Two programs at a glance

• USDA Single Family Housing Guaranteed Loan. You get a mortgage from an approved private lender, and USDA guarantees it. This is the most common path to zero down for buyers in our area. It can offer 100 percent financing if you and the property qualify. Learn more in the USDA overview of housing programs.
• USDA Single Family Housing Direct Loan (Section 502 Direct). USDA lends to low and very low income borrowers directly and may offer payment assistance. This program also allows zero down for eligible buyers, though it is more income restricted. See the Wisconsin Direct program page for details.

Links for reference:

• USDA overview of housing programs: Single Family Housing programs
• Wisconsin Direct program: Section 502 Direct Home Loans in WI

Is your Oconto address eligible?

How USDA defines eligible areas

USDA financing is available only for homes in eligible “rural” areas. The agency publishes an interactive map and address lookup. The public result gives you a strong indication, but final eligibility is confirmed during underwriting. Check addresses on the USDA Income and Property Eligibility site.

USDA updates its maps from time to time. Changes effective October 1, 2023, adjusted some boundaries, so always check the exact address you are considering. See the agency’s notice on eligibility map changes.

Oconto at a glance

Oconto’s 2020 census population is about 4,600, and Oconto County is under 40,000. That size suggests many addresses in and around Oconto may meet USDA geographic rules, but boundaries can cut through neighborhoods. Never assume based on city or county alone. For context, see the Oconto city population.

How to check an address step by step

1. Open the USDA eligibility tool.
2. Choose Single Family Housing, then Property Eligibility, and select Guaranteed or Direct.
3. Enter the full property address and zoom in to the parcel level. Sides of the same street can differ.
4. If the address is near a boundary, ask your lender to confirm during pre-approval.

Do you meet income and borrower rules?

Income limits, simply stated

For the Guaranteed program, USDA uses county-based income limits that are typically up to about 115 percent of area median income. For Direct, limits are lower and target low and very low income households. Exact numbers vary by household size and change annually. A quick overview is available here: USDA income eligibility basics. For current Oconto County limits, run your address and household size through the USDA tool or ask a USDA-approved lender.

How USDA counts household income

USDA looks at the income of all adult household members, not just the loan applicant. The agency allows certain deductions, such as childcare for children under 13 and eligible medical or disability expenses. Lenders use USDA worksheets to determine annual, adjusted, and repayment income. Learn more on the Wisconsin Direct page: USDA Direct Home Loans in WI.

Credit scores, debt, and what to expect

Lenders often prefer a mid-600s credit score for smoother processing, though approvals are possible below that with strong compensating factors. Many lenders target a back-end debt-to-income ratio around the low 40 percent range, with exceptions. These are typical lender practices, not hard USDA rules. For a plain-language overview, review this guide to USDA loan guidelines and fees.

Property standards, fees, and costs

Appraisal and condition

USDA loans require the home to be your primary residence and to meet basic safety, soundness, and sanitation standards. Appraisers will flag required repairs. Some issues must be fixed before closing, and others might be handled through a repair escrow. Older or heavily distressed homes can affect timing or eligibility.

USDA fees you should expect

Guaranteed loans include two common fees:

• An upfront guarantee fee that is often 1.0 percent of the loan amount. Many buyers finance this into the mortgage.
• An annual fee that is often 0.35 percent of the remaining loan balance, collected monthly.

These fees have been stable for several years, but confirm current figures with your lender. See a simple explanation of USDA fees and comparisons.

Closing costs and seller help

You will still have typical closing costs such as title, taxes, and prepaid escrows. USDA does not require private mortgage insurance because the guarantee fee structure serves a similar purpose. Seller concessions toward closing costs are allowed within program and lender limits. Ask your lender how to structure your offer.

Timeline and how to move forward in Oconto

• Get pre-approved with a USDA-experienced lender and confirm your expected fees, DTI, and credit guidelines.
• Verify the property is eligible on the USDA map. Build a USDA financing contingency into your offer.
• Complete inspection and appraisal. Address any required repairs early with your agent and the seller.
• Your lender submits for USDA’s conditional commitment. Once cleared, you are set to close.

Direct loans are handled by USDA and often take longer than Guaranteed loans, so plan extra time if you pursue the Direct program.

Quick checklist for Oconto buyers

• Run the exact address on the USDA eligibility site and save a screenshot for your records.
• Gather income documents for all adult household members and ask your lender to confirm current Oconto County income limits.
• Request a pre-approval that accounts for the upfront guarantee fee and the annual fee in your payment.
• Order a home inspection and review appraisal requirements so any repair items do not delay closing.
• If you have questions about lenders or program fit, contact the Wisconsin USDA Rural Development office. Find contacts here: Wisconsin RD Single Family Housing contacts.

If you want a local guide for neighborhoods, strategy, and negotiations, our team is here to help you pair USDA financing with the right Oconto home. Reach out to Becky Buckland to start a focused, step-by-step plan.

FAQs

How do I check if a home in Oconto is USDA-eligible?

• Use the USDA Income and Property Eligibility site, select Single Family Housing, choose Guaranteed or Direct, then enter the exact address and review the parcel-level map.

What income limit applies to my household in Oconto County?

• Limits depend on program type, household size, and annual updates; ask your lender to run the USDA income worksheet for your address or use the eligibility tool to see current figures.

Are there fees with a USDA zero down loan?

• Yes; the Guaranteed program typically includes a 1.0 percent upfront guarantee fee and a 0.35 percent annual fee that is added to your monthly payment.

Can I buy inside Oconto city limits with USDA financing?

• Often yes; eligibility depends on the USDA map for each address, not whether the listing is labeled city or rural, so always verify the specific location.

How long does a USDA loan take from offer to closing?

• Guaranteed loans follow typical lender timelines, while Direct loans can take longer because USDA handles the processing; build in extra time if using Direct.