The USDA (United States Department of Agriculture) Home Loan is a very little known 100% financing home loan available to people buying homes in rural areas of California and the rest of the U.S. This is another option for those who qualify for VA loan, but may already have a VA in place and need another 100% financing solution (you can only have one VA loan at a time). There are many locations that are surprisingly considered “rural” according to the USDA. Even locations that are less than one hour from major California cities such as San Diego, Los Angeles, San Francisco, Fresno, Riverside, and San Jose. The USDA home loan program is really a tremendous loan program that not many home buyers utilize because they just plain haven’t heard about it!
Some highlights of USDA Home Loan:
- 100% financing, ZERO down payment needed
- No monthly mortgage insurance (unlike FHA and conventional loans (with <20% down) that carry monthly mortgage insurance
- Excellent 30 year fixed interest rates at historic lows
- You do not have to be a first time buyer to qualify for a USDA loan
- Seller can pay for all your closing costs
Here are some additional requirements of USDA Home Loans:
- Your income needs to be within 115% of the area median income
- A USDA loan is only allowed on your primary residence
- USDA loans are for purchases only, not refinances
Below are some selected areas in California that qualify for USDA Loans. This is not an exhaustive list, just a sampling:
San Diego County
- Alpine, Ramona, Valley Center, Campo, Julian, Rainbow, Pauma Valley
Riverside County
- Desert Hot Springs
- Coachella
- Sun City
- Winchester
- Idyllwild
San Bernardino County
- Lake Arrowhead
- Big Bear
Imperial County
- Almost the entire county
Sonoma County and Napa
- Windsor, Healdsburg, Guerneville, Calistoga, St. Helena, and much more
Contra Cost, Alameda, Solano
- Byron, Rio Vista, Isleton
Placer, Sacramento, San Joaquin, El Dorado
- Lincoln, Auburn, Ripon, Lathrop
Central Valley Counties
- Tehachapi, lots of the towns surrounding Bakersfield, Fresno, Modesto, Merced, Redding and more qualify
Monterrey, Santa Cruz, San Luis Obispo, Santa Barbara, Ventura
- Boulder Creek, Scotts Valley, Moss Landing, Prunedale, San Juan Bautista, Paso Robles, San Miguel, Morro Bay, Solvang, Santa Ynez, Carpentaria, Ojai
So if you already have a VA loan on one property and you would like to get 100% financing, inquire about 100% USDA financing.
So give us a call or email today if you have any questions about USDA Rural Development Home Loans. Direct 858-922-7899 and email rob@affinity-financial.com.
Warm Regards,
Rob Chomentowski
Sr. Loan Officer
858-922-7899 (direct)
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