100% Financing Is Available With USDA Home Loans

USDA Home Loans Offer 100% Financing for properties in certain areas of Sonoma County.

USDA Home Loans are truly 100% financing mortgage loans and are available in Sonoma County.USDA Home Loans are for rural properties only and because of this the following cities are not eligible for USDA financing Santa Rosa, Rohnert Park, Cotati, and Petaluma. Here is list of eligible areas:

Glen Ellen
Boyes Hot Springs
St. Helena
Mark West Springs
Simi Valley
All of Lake County

These loans also have certain income eligibility requirements as well. For example depending on how many applicants there are on the mortgage and how many dependents they have could impact their eligibility. A single person who earns $92,450 per year in annual income is eligible for this program provided that they have no dependents. That is actually the maximum income for Sonoma County, California a borrower can earn and still be eligible. A borrower needs to earn this amount of money per year or less in order to qualify.

100% Financing USDA Home Loans contain similar credit profiles as other types of home loans.

A borrower seeking a USDA Home Loan home loan must also have a minimum credit score of 620 to be considered eligible. They can also receive a credit from the seller of up to 6% for closing costs and there is no earnest money deposit required either. If the borrower chooses to put earnest money into the transaction to strengthen their offer, this money will be refunded to them at the close of escrow or will be applied towards their closing costs. Because these loans do not have mortgage insurance the full monthly payment is lower than those loans that do contain mortgage insurance.

USDA Home Loans do have a 3.5% funding fee which is financed into the loan amount and amortized over the term of the loan. For example let’s say our purchase price is $250,000. Our loan amount would also be $250,000 plus a 3.5% funding fee of $8750 paid to USDA so our financed loan amount is $258,750 and that will be the final loan amount. It’s actually 103% financing. The principal and interest payment will be $1272.89+ $60 per month for fire insurance + $260.42 for taxes so the total monthly payment at a 4.25% 30 year fixed would be $1593.31.

How to Get a 100% Financing USDA Home Loan

The name of the program is the Section 502 Guaranteed Rural Housing Loan Program. To get one, start with finding a Sonoma County Local Loan Lender who offers these loan programs

If you are looking for a 100% Financing USDA Home Loan give me a call Scott Sheldon at 707-217-4000.
You can also contact me via e-mail Scott.Sheldon@nafinc.com. 100% Financing USDA Home Loans for Sonoma County Mortgages with the most current rates available.

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  1. […] USDA Loans-presently have a 3.5% funding fee however this is being reduced to 2% comes October 1. This loan program also offers 100% financing in Sonoma County and is available in rural areas. There are certain income limitations which we can discuss by calling 707-217-4000. Learn the areas of Sonoma County to get a USDA Home Loan. […]

  2. […] Sonoma County First Time Home Buyers are now getting to enjoy it easy street. For years, first time home buyers were capped at putting down hefty down payments. Since the markets have changed, first time home buyers in Sonoma County can now purchase a house with 0% down. Move up buyers can also purchase a house with 0% down. Earlier I wrote about USDA loans and how they work. […]

  3. […] USDA Mortgage Loans require the debt to income ratio to not exceed 43% of the gross monthly income considering other debt obligations. […]

  4. […] the mortgage loan you are taking out to purchase the property is a USDA mortgage. This mortgage loan allows up to 6% seller concession. So on that $250,000 house, you can get a […]

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