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:
Occidental
Forestville
Monterio
Guernville
Hacienda
Sebastopol
Bodega
Glen Ellen
Sonoma
Boyes Hot Springs
St. Helena
Calistoga
Angwin
Yountville
Mark West Springs
Windsor
Cloverdale
Simi Valley
Healdsburg
Geyserville
Graton
Cazadero
Forestville
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.
