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Mortgages on California Real Estate, USDA Home Loans

USDA Guaranteed Rural Housing Loans

Quality Funding offers USDA Home Loans to qualified borrowers. Applying is quick, easy, and secure with our online loan application (option #1 in our Main Menu on the left or Click Here).

Sometimes good credit and a steady income are not enough to qualify for a home loan at a commercial lending institution, such as a bank, savings and loan or mortgage company. More rural families and individuals may be eligible to become homeowners with the help of a USDA guaranteed home loan. When the federal government agrees to guarantee a loan, lending institutions can help buyers while incurring less risk. Through USDA’s Guaranteed Rural Housing Loan Program, low and moderate-income people can qualify for mortgages even without a down-payment.

Highlights of the USDA Guaranteed Rural Housing Loan Program:

● Loans may be for up to 100 percent (102 percent if the guarantee fee is included in the loan) of appraised value or for the acquisition cost, whichever is less. No downpayment is required;
● Mortgages are 30-year fixed rate at market interest rates;
● Loans may include funds for closing costs, the guarantee fee, legal fees, title services, cost of establishing an escrow account and other pre-paid items, if the appraised value is higher than sales price;
● Sellers may contribute to the buyer’s closing costs;
● Buyers must personally occupy the dwelling following the purchase;
● Loans may be made to refinance either existing USDA Rural Development Guaranteed housing loans or our Section 502 Direct housing loans;
● For purchase loans, a one-time guarantee fee equal to 2.0 percent of the loan amount is charged to the borrower. The charge for refinance loans is 0.5 percent. This fee may be financed with the loan. After the one-time fee is paid, there is no recurring monthly expense charged for guaranteeing the loan. The is no mortgage insurance;
● Closed loans have secondary market acceptability, including Freddie Mac, Fannie Mae, Ginnie Mae pools, and many state housing finance agencies;
● Guaranteed loans are subject to the provisions of the Civil Rights statutes, including the Equal Credit Opportunity Act.

To be eligible, applicants must:

● Have an adequate and dependable income;
● Be a U.S. citizen, qualified alien, or be legally admitted to the United States for permanent residence;
● Have an adjusted annual household income that does not exceed the moderate income limit established for the area. A family’s income includes the total gross income of the applicant, co-applicant and any other adults in the household. Applicants may be eligible to make certain adjustments to gross income, such as annual child care expenses and $480 for each minor child in order to qualify. *Please contact us for County-specific income limits.
● Have a credit history that indicates a reasonable willingness to meet obligations as they become due;
● Have repayment ability based on the following ratios: Principle, Interest, Taxes, and Insurance(PITI) divided by gross monthly income must be equal to or less than 29 percent. Total debt, which includes the new PITI and all revolving and installment credit debt, divided by gross monthly income must be equal to, or less than, 41 percent.

Homes That Qualify:

● Guaranteed loans can be made on either new or existing homes;
● Existing homes must be structurally sound, functionally adequate, and in good repair;
● There are no restrictions on the size or design of the home financed;
● The home must not be used for income-producing purposes;
● Homes must be located in rural areas. Rural areas include open country and places with a population of 10,000 or less and under certain conditions, towns and cities with between 10,000 and 25,000 residents. *Please contact us for verifying home eligibility.

To apply for a USDA Home Loan please complete the online loan application! A Mortgage Consultant will contact you within one business day.

USDA Mortgage interest rates are subject to change unless locked.

Licensed by the California Department of Real Estate Broker's License #01871737

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Program Development Jason Shapiro Tuesday 04 April 2006 - 18:04:52 | Quality Funding
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