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USDA Loans in California

The California USDA Rural Development home loan program allows home buyers the chance for affordable housing. What's more - this program allows for true 100 percent home loan financing. Though the program is focused on rural areas, many eligible areas actually feel more urban or metro.

This is especially true for areas of Central California, as the housing boom stopped here last, leaving many new homes vacant in areas that have not yet been annexed by cities or municipalities.

Could a California USDA Rural Development Home Loan Be For You?

Let's take a look at some of the basics of this great program:

• Qualified home buyers receive 100% Financing
• Unlike many traditional home loan programs, this program has no cash reserve requirements
• You are allowed to receive up to as much as 6% of the agreed upon purchase price from the seller to help cover any remaining closing costs
• There are minimum FICO credit score limitations - though reasonably steady payment history on your bills is advisable
• The USDA Sets no limits on the price of the home, as long as your income fits within the allowed limits and you can still afford to make your loan payments
• All buyers are allowed to apply - not just first timers! (Income and geographic limitations must be met)
• These loans come with very competitive interest rates - no artificially high mortgage rates just because you're using a special program!
• Private Mortgage Insurance (PMI) is Not Required - Meaning you don't have to pay the lender an insurance fee to hedge against you defaulting on your loan - The USDA Backs them up instead!

This program is one of the very few remaining true 100 percent home loan financing option out there. If you feel you might qualify, you should really take a look into it. Here are some of the main stipulations you'll need to meet if you wish to qualify for the California USDA Home Loan program:

• Borrowers must be US citizens or a legal permanent residents
• Your chosen home must be in an eligible rural area
• The home you buy can only be used for residential purposes - no business use
• Your targeted mortgage payment should be no more than 29% of your gross monthly income
• You should have reasonably good credit - or zero credit history
• The income your family earns per year can be no more than 115% of the US median income
• You cannot already be a home owner. You must be purchasing this home as your primary and only residence.
• Other eligibility rules factor in as well. However, if you meet the above stipulations, there's a good chance you will qualify for a California USDA Rural Development Loan