USDA Rural Development Loans – a 100% financing Option for Home buyers in Ramona CA
Ramona Home Buyers still have access in many areas to a little known US Government Loan Program that offers 100% financing for the purchase of a Home in a USDA RD eligible areas. Ramona USDA Eligible areas have been designated as “Rural” due to population density. Strangely enough, only non-farm residences can qualify, however single family homes and condos can qualify. The program is designed to help develop home buying options in less densely populated areas that may be underserved by mainstram home loans. There are many areas in Ramona, CA that qualify for the USDA Rural Development Zero Down Payment Home Loan Program. (see the pics below for maps)
With the USDA Rural Development Home Loan program, USDA eligible Ramona borrowers are not required to make a down payment. and the monthly Mortgage Insurance is at a .50 annual rate, much lower than MIP on FHA Loans and PMI on conventional loans.
On a $250,000 USDA backed home purchase, there are two areas that you save: First, There is no down payment requirement, so you will save $8,750 versus an FHA Loan, with the required FHA down payment of 3.5%. Second, Since the MIP rate is much lower, you will save $67.59/month in MIP (Mortgage Insurance Premium). The combination of these two savings make this program a very attractive for first time home buyers, as you can qualify for more home with the same payment and income.
There are three primary pre-requisites to qualify for the USDA Rural Development Home Loan:
1. Borrowers must qualify under the maximum household income cap
2. The home must be located in a USDA eligible region/address
3. All borrowers must have minimum 620 Credit Score
1 Borrowers must not exceed the annual household income requirement For example. a family of 1-4 must not exceed a household income greater than $142,400 annually in San Diego County for Ramona families of 1-4 people in the household. Families with 5-8 people can earn as much as $187,950 and still qualify! We recommend a quick 5 minute phone call to discuss your ‘total household income’ under USDA guidelines. Contact Brian Skaar at 866-900-2342 toll free direct.
2 Borrowers must purchase a home in a USDA-RD approved region/address. You can search by map or address. Below is a link where you can by-pass the map and type in the physical address to get instant verification – Verify a USDA eligible address. I always recommend that my clients work with a Real estate agent that understands the USDA Rural Development Program. From helping you find and locate a USDA RD eligible home, to understanding the funding and closing process, it is key that your agent understand this program.
3 USDA Credit Score Guidelines. The USDA program is about as “flexible” as any loan program available today. In some cases, borrowers may even qualify with collections, or a recent bankruptcy just 2 years out from discharge. We do require a 620 minimum score now, however these details change. call for updates.
We offer a Free No Obligation Mortgage Credit Analysis. This will give you a game plan for establishing sufficient credit to qualify and detailing the home buying process.
To get started, please give us a call at 866-900-2342 toll free direct, ask for Brian Skaar. VanDyk Mortgage is a USDA Direct Lender and your source for all Government Home Loans. We have been making Government Loans since 1987.
VanDyk Mortgage funds USDA, VA and FHA Loans Direct. We offer USDA, FHA, FHA Jumbo, VA, VA Jumbo, Conventional Loans up to 97%, Conforming Jumbo, and True Jumbo Loan.
San Diego County RD eligible areas include parts of Alpine, Borrego Springs, Ramona, Fallbrook, Valley Center, Julian, Rainbow, Pala, Pauma Valley, and Palomar Mountain.