The US Department of Agriculture created a loan program originally created to help farmers borrow money to purchase and build homes on their farms. These loans are another true zero down payment mortgage, and in some cases, a borrower can receive cash back at closing for repairs or additions. What makes the USDA purchase mortgage loan unique is that the maximum loan amount allowed is 102% of the appraised value of the home, as opposed to the purchase price. So if you are purchasing a home for $100,000, and it appraised for $110,000, you are able to borrow up to 102% of $110,000. USDA Mortgage loans are restricted to specific eligible areas and are most commonly in rural areas. However, with the constant sprawling of Suburban America, Planned Unit Development (PUD) communities are growing into these rural areas, and therefore, some of these homes are eligible for the 102% financing.