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How buy a house using the USDA home loan program in Riverside County California

October 3rd, 2018 3:29 PM by Nathan Rufty

USDA Loans in Riverside County, California

When the subject of financing a home comes up in a conversation with a friend, real estate agent or even a mortgage loan professional, the phrase USDA Rural Development usually does not come up. And when it does, the typical response has been; "we aren't looking for a farm".

The last thing you would think of would be about a mortgage. After all the USDA grades beef, eggs and pork; but mortgages?

The USDA Rural Development Home Loan in Riverside County is a mortgage that is Guaranteed by the United States Department of Agriculture and helps families buy homes in areas designated as rural by the USDA. Its purpose is to help low to moderate income families buy a home without the burden of a large down payment and without the added expense of a costly monthly mortgage insurance payment.

usda loans in riverside county

What does USDA Loans in Riverside County offer? 

USDA Loans in Riverside County assists approved lenders in providing low- and moderate-income households the opportunity to own adequate, modest, decent, safe and sanitary dwellings as their primary residence in eligible rural areas. Eligible applicants may build, rehabilitate, improve or relocate a dwelling in an eligible rural area. The program provides a 90% loan note guarantee to approved lenders in order to reduce the risk of extending 100% loans to eligible rural homebuyers.

Who in Riverside County may apply for the USDA Program?

Applicants must:

  • Meet income-eligibility
  • Agree to personally occupy the dwelling as their primary residence
  • Be a U.S. Citizen, U.S. non-citizen national or Qualified Alien
  • Have the legal capacity to incur the loan obligation
  • Have not been suspended or debarred from participation in federal programs
  • Demonstrate the willingness to meet credit obligations in a timely manner
  • Purchase a property that meets all program criteria
  • What is an eligible area?
  • Check eligible addresses for the loan guarantees.

How may USDA Loan funds be used?

Funds backed by loan guarantees be used for:

  • New or existing residential property to be used as a permanent residence.  Closing cost and reasonable/customary expenses associated with the purchase may be included in the transaction
  • A site with a new or existing dwelling
  • Repairs and rehabilitation when associated with the purchase of an existing dwelling
  • Refinancing of eligible loans
  • Special design features or permanently installed equipment to accommodate a household member who has a physical disability
  • Reasonable and customary connection fees, assessments or the pro rata installment cost for utilities such as water, sewer, electricity and gas for which the buyer is liable
  • A pro rata share of real estate taxes that is due and payable on the property at the time of loan closing.  Funds can be allowed for the establishment of escrow accounts for real estate taxes and/or hazard and flood insurance premiums
  • Essential household equipment such as wall-to-wall carpeting, ovens, ranges, refrigerators, washers, dryers, heating and cooling equipment as long as the equipment is conveyed with the dwelling
  • Purchasing and installing measures to promote energy efficiency (e.g. insulation, double-paned glass and solar panels)
  • Installing fixed broadband service to the household as long as the equipment is conveyed with the dwelling
  • Site preparation costs, including grading, foundation plantings, seeding or sod installation, trees, walks, fences and driveways

How do we get started with a USDA Loan in Riverside County, California?

To apply for this program, please contact Nathan Rufty at 909-503-5600.  Applications must be submitted through an approved lender.  If you are unable to find a participating lender, your state’s Guaranteed Loan Coordinator can help you find one.



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