Bankrate.com reports the zero-down mortgage is still alive in the form of the USDA home loan. The property must be in a designated rural area; however, some eligible properties are in places that most people would not consider rural. USDA Spokesman Jay Fletcher explains to MHMSM.com the department has two programs, a Direct program and a Guaranteed loan program. In the direct program, the USDA is the note holder. In the guaranteed housing program, the lender works with a lender of their choosing and the USDA guarantees the loan. In addition to loans for home purchases, the program has provided $1.4 billion in grants that have been used to make repairs such as fixing leaking roofs, installing indoor plumbing or central heating and improving energy efficiency through weatherization. Direct or Guaranteed Housing loan programs may purchase manufactured housing as long as the unit is new, which means manufactured within the past 12 months, and is purchased through an approved dealer/contractor. Each USDA Rural Development field office has a list of these approved dealers.