USDA Loans: Now Available to Millions

 

42493 Usda Zero Down Loan Program

Click here for USDA eligibility area

 

USDA 

 

100% LOAN PROGRAM

 

38438 Usda

USDA LOAN FEES

O% DOWN PAYMENT LOAN

Generally, USDA loan closing costs run between 3% to 6% of the home's purchase price. 

 USDA Guarantee Fee

 USDA loans have a 1% upfront fee and a 0.35% annual fee

It's important to note that the USDA annual fee is a recurring fee that is not cancelable.

USDA Guarantee Fee Example

The USDA upfront fee can be added to your loan amount if you don't pay it at closing. Here's an example of how it works:

Example Loan Amount $500,000
Upfront USDA Fee (1%) $500,000 x 1% = $5000
Total =  $505,000

The USDA annual guarantee fee is calculated as a percentage of the remaining loan balance each year and divided among your monthly mortgage payment.

Example:

Year 1 Loan Amount $505,000
Annual USDA Fee (0.35%) $505,000 x 0.35% = $1767.50
Annual USDA Fee Monthly Cost   $1767.50 / 12 = $147.29/month

 

Closing Costs Types

 

  • Origination fee: 1-2% of your loan amount
  • Processing/underwriting fee:  Approx $1000 each
  • Credit report:  Around $100 
  • Discount points: You can buy down the rate with points if you want.
  • Appraisal fee:   $400 to $850
  • Prepaid interest: You'll need to pay interest on your loan for each day between your closing date and the end of the month. Estimated cost: Depends on your interest rate and loan amountProperty-Related Costs
    • Prepaid property taxes: 1.25% of the purchase price
    • Home insurance premiums: Approx $1200 - $2000/year (start shopping around)
    • Recording fee with county:  Approximately $300
    • HOA fees: If ANY (Usually between $80 to $500)
    • Home warranty fees: Approximately between $350-$600. Builder usually pay for the first year.

 

 
 
 

Step #1 : Check your primary home eligibility area

USDA Eligibility area around Sacramento 

In this map below grayed-out is ineligible area. You can buy anywhere else your primary home without any down payment and get USDA loan

Maximum loan amount by county:

Sacramento/Placer/Yolo County $610,800

Plumas/Sutter/Trinity/Tehama County: $419,300

Sutter/Yuba County: $419,300 

Alameda/Orange/Contra Costa County: $967,800

Santa Cruz County: $970,800

 

38750 Usda Eligible Area In Sacremento Metro Area

You probably associate the United States Department of Agriculture, or USDA, with things like the food pyramid, food safety and plant inspections. But did you know the USDA is also involved in rural development?

A USDA loan is a cost-effective mortgage choice, making homeownership more accessible for low-income residents in specified rural regions. These loans are supported by the U.S. Department of Agriculture, similar to how the Department of Veterans Affairs backs VA loans for eligible veterans and their families. Due to government backing, lenders often provide lower interest rates compared to traditional loans. Qualified applicants can purchase a home without a down payment, though closing costs still apply.

Types Of USDA Loans

There are 3 Main Types of Loans

  • USDA Direct loans: For qualifying low-income borrowers these loans have interest rates as low as 1%.
  • USDA Loan guarantees: Offer by participating lenders these loans offer low interest rates and low down payments sometimes even 0%.
  • USDA Home improvement loans: Qualified homeowners can use these loans for improvements or repairs to their homes.

Do I Qualify for a USDA Loan?

  • Residency - You must be a U.S. resident, noncitizen national or permanent resident alien.
  • Location - Your home must be located in an eligible rural area. Click to see this map of eligible areas
  • Income - Can't be higher than 115% of the median income in your area
  • Credit Score - Generally a score of close to 640 is required

USDA Loans are for:

  • New Home
  • Pre-existing home
  • Condominium
  • Townhouse
  • Land and the cost of building a home
  • Commercial property
  • Farms and equipment
Apply Now!