Home Point Financial is pleased to announce that we now have California USDA financing. USDA Loans in California are intended to provide lower-income homeowners with 100% financing (with no down payment). USDA (United States Department of Agriculture) loans, once known as farm loans, are now available to California residents in almost every CA county outside of major metropolitan areas (rural areas in California including Glenn County, Colusa County, Lake County, Lassen County, and others).
USDA Loan Requirements and Guidelines (California)
There are a number of requirements to quality for California USDA Loans:
- Monthly California housing costs (mortgage principal and interest, property taxes and insurance) must meet a specified percentage of your gross monthly income (29% ratio).
- Credit background will be fairly considered. At least a 640 FICO credit score is required to obtain a USDA approval through most lenders in California.
- California borrower must have enough income to pay your housing costs plus all additional monthly debt (41% ratio with some flexibility).
- Income can be up to 115% of the median income for the area.
- Bankruptcy: Have been discharged from a Chapter 7 bankruptcy for three years or more (if applicable).
- California property must be considered rural which is generally defined as open country with fewer than 10,000 people. Learn more here: http://eligibility.sc.egov.usda.gov.
California families must be able to afford the mortgage payments, including taxes and insurance.
California USDA Mortgage Rates
California USDA Loan rates vary by individual and are determined by a number of factors specific to the individual, California property being financed, etc. In general, CA USDA rates are better than average compared to other options for qualifying individuals.