The USDA Rural Housing Service program is a zero down payment mortgage for California homebuyers to finance homes located in eligible rural and semi-rural areas (the USDA Rural Housing program is available nationwide). The USDA program provides very low- to moderate- income rural residents with better access to affordable housing finance options with little or no down payment or out-of-pocket costs. To be eligible, borrowers must lack sufficient assets needed to obtain traditional uninsured conventional financing (less than 20% down payment). USDA loans are issued through the USDA Rural Development Guaranteed Housing Loan Program, which is administered by the United States Department of Agriculture.
Benefits of the USDA Rural Housing Service Program
- Up to 100% financing- No down payment required!
- Available on purchase and refinance transactions.
- Seller concessions of up to 6% of the sales prices allowed, which means you can negotiate for the seller to pay your closing costs.
- Program is not limited to California first-time homebuyers, any eligible California homebuyer can apply.
- No maximum purchase price or loan amount limits with the USDA program. California homebuyers qualify based on their debt-to-income ratios.
|TERMS||MAX LTV/CLTV/HCLTV||DPA & SECONDARY FINANCING AVAIBLABLE||OCCUPANCY||TARGET AREA||1ST TIME HOMEBUYER REQUIRED||INCOME LIMIT||MAX SELLER CREDIT|
|"PURCHAES, RATE/TERM REFI, STREAMLINE REFI & STREAMLINE ASSIST REFINANCE 100%/102%/102% Loan LTV Max Exceed 102% based on the following calculations: Maximum LTV and Loan Amount• For Purchase and Refinance transactions, the loan amount plus closing costs cannot exceed 100% of the appraised value, excluding the Guarantee Fee• For streamline refinance, loan amount includes principal balance of loan being paid off and the one time up-front guarantee fee only• For streamline assist refinance, loan amount includes the principal and interest balance of the existing loan, eligible loan closing costs, funds necessary to establish a new tax and insurance escrow account, and the upfront guarantee fee. The original acquisition date of the subject property must have been on or after the year 2011• There is no min/ max loan amount• TLTV may be exceeded based on loan amount calculation "
||"New subordinate financing is allowed on purchase transactions according to Rural Development requirements o Resale Deed Restrictions are ineligible• Existing subordinate financing may not be paid off and must be re-subordinated"
||OWNER OCCUPIED ONLY
||NO SEE GUIDELINES FOR VERY SPECIFIC GUIDANCE ON OWNING OTHER REAL ESTATE
YES Income from all working adult members (age 18 or older) residing in the home must be included in the household income to determine eligibility. The household income must not exceed the moderate-income limits established for the area in which they are purchasing/refinancing the home
|"Seller or other interested third party contributions are limited to 6% of the sales priceo Closing costs or prepaid items paid by the lender by premium pricing are not included in the seller contribution limitation.o Fees towards to the borrowers cost to close such as real estate commission or other typical fees paid by the seller or other interested parties under local, state law, or local custom are not considered in the maximum seller contribution"
USDA Rural Housing Service Program - Down Payment Assistance Program is available in the following areas/cities
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