First Residential

USDA Loans

USDA loans require NO DOWN PAYMENT and are guaranteed by the U.S. Department of Agriculture. The program is called the USDA Rural Development Guaranteed Housing Loan Program (and sometimes the “Section 502 loan” — 502 is the section of the USDA charter in which these loans are authorized).
Although the program’s name encompasses the phrase “rural development,” many suburban areas are also eligible for USDA financing.
The US Department of Agriculture does not make loans. USDA loans are made by private lenders and are guaranteed by the Department of Agriculture. Consequently, lenders are assured they will not suffer a loss when making USDA loans. Because lenders assume a lower risk, USDA loans typically have a lower interest rate. In fact, USDA loans have rates that are often the lowest of all of the government backed mortgages— including FHA and VA. It’s important to note that USDA loans can also be used to purchase a manufactured or modular home. It’s also fair to say that USDA underwriting guidelines are more relaxed.

Down Payment

As stated earlier, USDA loans enjoy popularity among home buyers because there is no down payment required—100% of the purchase price is financed.

Mortgage Insurance

USDA loans require mortgage insurance which includes 2% of the loan amount upfront (paid at closing) and 4/10 of one percent paid annually.
For example, assume that a home buyer wants to purchase a $250,000 home in Brawley, California. There is no down payment required. The buyer’s upfront mortgage insurance premium would be $5,000 (2% of the loan amount) and the annual premium would be $1,000 ($250,000 x .004) prorated monthly @ $83.33 and included in the buyer’s mortgage payment. The USDA upfront mortgage insurance premium does not have to be paid in cash (it may be included in your loan balance).

Income Limits

USDA Loans are extended to households having “modest” incomes only. There are no exceptions to the income limitation requirements. For qualifying purposes, USDA defines modest income as a family income level that does not exceed the median household income for that area by more than 15%, with adjustments made for family size. For example, in our area of San Diego – Carlsbad – San Marcos, these are the 2015 income limits:
Family size of 1 – 4: $95,000

Family size of 5 – 8: $125,400

Click Here
For 1% Down Loan

Click Here
Cal-Vet Loans

Click Here
For Conventional Loans

Click Here
For FHA Loans

Click Here
For JUMBO Loans

Click Here
For VA Loans

Click Here
USDA Loans

Click Here
HARP Loans

Click Here
Reverse Mortgage

Click Here
Mortgage Calculator

About San Diego

San Diego is one of the fastest growing cities in America. Boasting a population that exceeds 1,300,000, we’re the 8th largest city in the U.S. and the 2nd largest in California. Of course, arguably, we have the most beautiful city anywhere.