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What Does it Cost to Buy a House in California
USDA Home Loans Available with Zero Down Payment on a Home Purchase In California!
100% Financing to purchase a home!
We have a program for you called the USDA-RD home loanthat offers buyers at 100% financing, that’s right no money down to purchase a home.
Not to many buyers know about this home loan program, but a great way to purchase a home in a designated area of the county in the state of California at 100% financing. However, while many may think that in order to qualify for a USDA mortgage you need to find a home in the middle of nowhere, this is actually not the case. A lot of people are actually surprised to find out that almost any area outside of a major metropolitan city is approved in a USDA eligible area.
Rural areas are closely defined as any town, village, city or densely area that has a population of less than 10,000 residents. However, if an area in question is not contained within a Metropolitan Statistical Area (MSA) and has a serious lack of mortgage credit it may have a population up to 25,000 residents to qualify.
While USDA home loans have long been thought to be only for farmers, many new home buyers have recently discovered all the benefits the USDA mortgage program has to offer. For example, USDA home loans have some of the lowest mortgage interest rates in the country, are guaranteed for 30 years and requires no money down. The best part about the USDA home loan is, if the appraised value comes in higher than the agreed purchase price, the closing cost can be financed in the extra value that the appraisal came in at. What these means is, no money for the down payment and if the value comes in higher, finance the closing cost, you the buyer can purchase a home with the USDA home loan program for around $1500, that will cover the home inspection(if you elect to do, which we encourage you to have completed), the appraisal and the credit report.
Other mis-conception about the USDA home loans is that you have to be a 1st time home buyer, not the case. You can qualify for this just selling your primary home, just can not own another property at the time of closing on the USDA-RD program. Which means you are only allowed to have one home in your name by the time you close oyur purchase transaction utilizing the USDA home loan program.
California has many designated areas explore to see if the particular location that you are looking to purchase a home falls within the approved area of USDA lending, so you can take advantage of this program and save on the down payment. Look into the USDA home loans before looking at any other home loan program as a new home buyer. Even if you do not plan on leaving in the home for a very long time, purchase the property with it as an investment. After owning and living on the property for 12 months from the close of escrow you are allowed to rent the property as a rental, letting the house proceed income as well as equity for future investment to sale at a profit.
I welcome the opportunity to speak with you about the USDA home loans and discuss your lending options to purchase a hone with no money down.
USDA Home Loans Available with Zero Down Payment on a Home Purchase In California!
by Nathan Rufty
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