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

October 30th, 2018 10:58 AM by Nathan Rufty

Who does USDA Home Loans in Riverside County

A USDA Rural Development Loan in Riverside County is the way to go if you are interested in an economical and obtainable mortgage, a mortgage that you an afford for the house of your dreams.

Widely been regarded as a sibling to the FHA home loan program, you will find plenty of restrictions with USDA mortgages. But despite that, it provides certain benefits that you cannot find with FHA loans. The main advantage of USDA mortgages in Riverside, California is that it gives you an opportunity to get a zero-down payment mortgage outside of the VA program that is applicable to military veterans.

Another significant thing to note about USDA Rural Development Loans is that it offers you 100% financing, with no need of down payment. Interest rates are pretty much in par with the traditional mortgages, although there is a provision of financing fee upfront.

You do not need to worry about the mortgage insurance but yes you do need to pay a yearly fee equal to 0.3 percent of the loan balance. Still it is lot less than the traditional mortgage. When it comes to your income and property types, USDA Rural Development Loans have stricter limits in comparison to FHA mortgages. As evident from the name itself, USDA Rural Development mortgages are only applicable to home buying in rural areas.

In terms of features, these loan packages are only offered to individuals that have low and moderate incomes. The USDA provides an online tool with the help of which you can get a clear idea of property and income eligibility that is associated with your state. With regard to property eligibility, you will find a map that will depict what portions comes under the category of rural. You will not find income limits list up front but yes by submitting your own detail, you will get an idea of whether you qualify or not.

There are no restrictions regarding the loan amount, although program guidelines need that homes purchased should not be lavish and are modest in terms of size and cost. Certain features like swimming pool are not allowed. To qualify for a USDA mortgage, you need to prove that you lack adequate housing at present.

To get the best out of the USDA's Rural Housing Direct Loan program, it is quite important that your income is less than 80 percent of the local median. This program is tailor made for low-income borrowers. The Direct Loan program provides mortgage terms for more than 35 years on traditional homes or condos and 30 years on manufactured houses. To get USDA Rural Development Loans, you need to contact HUD-authorized lenders.

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

How to buy a house using USDA Home Loan Program?

First you will need to know if your specific situation in terms of your ability to borrow a mortgage loan and the property that you are purchasing fit within the USDA program guidelines below. But if you these terms are too confusing for you, we make it easier that ever to get qualified to a USDA home loan in Riverside County, all you have to do is to call Nathan Rufty at 909-503-5600 your USDA loan expert in Riverside County and ask for a free consultation.

Borrower Qualifications:

  • Be without decent, safe and sanitary housing
  • Be unable to obtain a loan from other resources on terms and conditions that can reasonably be expected to meet
  • Agree to occupy the property as your primary residence
  • Have the legal capacity to incur a loan obligation
  • Meet citizenship or eligible noncitizen requirements
  • Not be suspended or debarred from participation in federal programs

Properties financed with direct loan funds must:

  • Generally be 2,000 square feet or less
  • Not have market value in excess of the applicable area loan limit
  • Not have in-ground swimming pools
  • Not be designed for income producing activities

Interest rate and payback period?

  • Fixed interest rate based on current market rates at loan approval or loan closing, whichever is lower
  • Interest rate when modified by payment assistance, can be as low as 1%
  • Up to 33 year payback period - 38 year payback period for very low income applicants who can’t afford the 33 year loan term



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