USDA loans do not require any down payment, and you can cover closing costs with seller concessions of up to 6%. Seller concessions are the credit sellers offer homebuyers as an incentive so the homebuyer does not have to come up with any money on a home purchase with USDA loans.

Homebuyers can get seller concessions for a home purchase from the seller up to 6% of the home purchase price which can be quite large. So on a $500,000 home purchase, the seller concessions can be a total of $30,000. Can the home buyer use the $30,000 on a $500,000 home purchase for the down payment?