It can be easy and affordable to purchase a home in a rural part of California using a USDA mortgage.
What is a USDA Mortgage?
USDA home loans are a special form of income-based financing backed by the US Department of Agriculture. If you are eligible for a USDA mortgage, you can purchase a rural home with no down payment.
Benefits of USDA Mortgages in California
- Buy a home now. Since there is zero down payment required, you do not have to wait to save up for one.
- You can qualify for affordable interest rates even if your credit score is not ideal.
- Some types of mortgages have universal loan limits, but USDA mortgages do not. Your qualifications determine the limits of what you are eligible to borrow.
- You do not have to pay for mortgage insurance premiums (MIP). There is a similar cost called the “USDA loan guarantee fee,” but this is lower than the cost for MIP.
How Do You Qualify for a USDA Home Loan?
If you want to use a USDA mortgage to purchase a home, you must meet the following basic requirements:
- USDA mortgages are only available to borrowers who do not earn more than 115% of the median household income for their areas.
- To buy a home with a USDA mortgage, you will need to pass an assessment of your credit score, DTI ratio, and employment status and history.
- USDA home loans are only intended for homes in rural zones. You cannot use them in urban areas.
You might assume that if you are shopping for a home in or near Tustin, you would not be eligible for a USDA mortgage. But north and east of Tustin, there are rural locations. There are also additional rural areas surrounding Los Angeles, San Bernardino, and Riverside.
Apply Now for a USDA Mortgage in Tustin or Nationwide
When you meet with us for a consultation, we can help you figure out whether you are shopping for a home in what the USDA considers to be a rural zone. We can then walk you through these steps to apply for a USDA mortgage.
Please give us a call today at (949) 751-6940 to schedule your consultation. We help borrowers apply for USDA home loans throughout California and all 50 states.
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