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How to Buy a House in California with No Money Down on the USDA Home Loan Program

May 3rd, 2015 5:01 PM by Nathan Rufty

Buy a house with no money for the down payment in California on the USDA home loan program, not limited to first time homebuyers, Call Direct 909-503-5600.

The USDA purchase home loan program is perfect for those homebuyers with no money for the down payment. Watch the above video to locate the approved lending area in the county in which you are looking to buy in.

The benefits to this program are: 
  • No money for the down payment (will have to come in with a little money to open escrow with and you will have to discuss that amount with your agent)
  • This benefit has to be by far one of the best reason to explore the USDA program, if the appraised value comes in higher than the agreed purchase amount, we can use that extra equity to finance your closing closet.
  • Also, if elected the seller can contribute up to 6% of the purchase amount towards the buyers closing cost
  • No limited to first time homebuyers, can not own or be on title of any other residential property at the time of closing escrow on the USDA loan
  • No prepay penalty, can pay off the loan ay any time with a penalty of doing so
  • Very small monthly mortgage insurance, the MI will remain through the term of the loan
  • No Maximum purchase amount, still need to qualify for the payment within the required debt to income ratio requirements
  • Primary purchase only, can not be used to buy a 2nd or investment property
There are income requirements that are determined by the numbers of dependents that will be living in the property and by which county the home is located in, click HERE to see what are the income limits and we use the "MOD.INC-GUAR.LOAN" line. If you feel you meet the income limit in the county, then you are one step closer in buying a house utilzing the USDA purchase home loan program.

The debt to income ratio is based on the monthly gross income claimed on your federal tax returns. The debts are based on what your credit report reports as debt, also the new house payment and any other debt such as child support, alimony and any deductions that are on your pay-stub, we will need to review all your income and credit documentation to determine that ratios meet USDA underwriting guidelines.

Also, determining on what your middle credit is you may not need reserve assets, what this is 2 months liquid cash that you will have on hand after closing escrow and the 2 months is of the total monthly mortgage payment. Having a higher credit score with reflect a compensating factor that you may not need to have reserves (based on a set middle credit scores, which can change without notice, that is why we need to review at the time of application).

To see if you fully qualify for the USDA purchase home loan program, call or text me at 909-503-5600, also can connect with me here by email nathan@nathanrufty.com. I welcome the opportunity to review your application to see what we can do for you on this great no money down home loan program.

Lets discuss how you can buy a house in California with the USDA home loan program today, we are about "Making Homeownership a Reality".



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