California USDA Loans

What are USDA Home Loans?

USDA Mortgage from California USDA Rural Development provides a low-cost insured home mortgage loan that suits a variety of options. A USDA mortgage is likely the best home loan option if you want to purchase a home with no down payment. If you’re unsure about your credit rating, or have concerns about a down payment when you’re doing a home loan comparison, USDA Rural Mortgage Loans can give you piece of mind with zero-down, super low closing costs and low monthly mortgage insurance.

What Types of Loans does USDA offer in California?

Currently, there are two kinds of USDA Home Loans available to purchase California single family households:

. USDA Guaranteed Rural Housing Loans
USDA Guaranteed Home Mortgage Loans are the most common type of USDA Loan in California and allow for higher income limits and 100% financing for home purchases. USDA Guaranteed Loan applicants may have an income of up to 115% of the median household income for the area. Area income limits for this program can be viewed here. All USDA Guaranteed Loans carry 30 year terms and are set at a fixed rate.

. USDA Direct Rural Housing Loans
USDA Direct Housing Loans are less common than USDA Guaranteed Loans and are only available for low and very low income households to obtain homeownership, as defined by the USDA. Very low income is defined as below 50 percent of the area median income (AMI); low income is between 50 and 80 percent of AMI; moderate income is 80 to 100 percent of AMI. Click here to see area income limits for this program.

What factors determine if I am eligible for a USDA Loan in California?

To be eligible for A USDA Rural Loan in California, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income (29% ratio). Your credit background will be fairly considered. A 620 FICO credit score is required to obtain a USDA Rural Housing Loan approval through most lenders. You must also have enough income to pay your housing costs plus all additional monthly debt (41% ratio). These ratios can be exceeded somewhat with compensating factors. Applicants for loans may have an income of up to 115% of the median income for the area. Maximum USDA Guaranteed Loan income limits for your area can be found at here. Maximum USDA Direct Loan income limits for your area can be found at here. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance.

What is the maximum amount that I can borrow?

The maximum amount for an USDA home loan is determined by:

Maximum Loan Amount: The is no set maximum loan amount allowed for USDA Rural Development Mortgage Loans. Instead, your debt-to-income ratios will dictate how much home your can afford (29/41 ratios). Additionally, your total household monthly income must be within USDA allowed maximum income limits for your area. Maximum USDA Guaranteed Loan income limits for your area can be found at here.

Maximum financing: The maximum USDA Rural Development Loan amount is 102% of the appraised value of the home (100% plus the 2% USDA RD Loan guarantee fee).

How much money will I need for the down payment and closing costs?

USDA Rural Development Mortgage Loans require no down payment and they allow for the closing costs to be included in the loan amount (appraisal permitting).

What property types are allowed for USDA Rural Loan Mortgages?

While USDA Mortgage Guidelines do require that the property be Owner Occupied (OO), they do allow you to purchase condos, planned unit developments, manufactured homes, and single family residences.

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California USDA Loan Adjusted Maximum Income Limits by County
Updated 05/01/2012

County Name
1-4 Person Households
(Guaranteed Loans)
5-8 Person Households 
(Guaranteed Loans)
ALAMEDA
1,094,625
1,094,625
OAKLAND-FREMONT-HAYWARD, CA METROPOLITAN DIVISION
ALPINE
503,750
1,094,625
NON-METRO
AMADOR
417,000
1,094,625
NON-METRO
BUTTE
417,000
1,094,625
CHICO, CA (MSA)
CALAVERAS
417,000
1,094,625
NON-METRO
COLUSA
417,000
1,094,625
NON-METRO
CONTRA COSTA
1,094,625
1,094,625
OAKLAND-FREMONT-HAYWARD, CA METROPOLITAN DIVISION
DEL NORTE
417,000
1,094,625
CRESCENT CITY, CA (MICRO)
EL DORADO
516,000
1,094,625
SACRAMENTO–ARDEN-ARCADE–ROSEVILLE, CA (MSA)
FRESNO
417,000
1,094,625
FRESNO, CA (MSA)
GLENN
417,000
1,094,625
NON-METRO
HUMBOLDT
417,000
1,094,625
EUREKA-ARCATA-FORTUNA, CA (MICRO)
IMPERIAL
417,000
1,094,625
EL CENTRO, CA (MSA)
INYO
417,000
1,094,625
BISHOP, CA (MICRO)
KERN
417,000
1,094,625
BAKERSFIELD, CA (MSA)
KINGS
417,000
1,094,625
HANFORD-CORCORAN, CA (MSA)
LAKE
417,000
1,094,625
CLEARLAKE, CA (MICRO)
LASSEN
417,000
1,094,625
SUSANVILLE, CA (MICRO)
LOS ANGELES
737,500
1,094,625
LOS ANGELES-LONG BEACH-GLENDALE, CA METROPOLITAN
MADERA
417,000
1,094,625
MADERA, CA (MSA)
MARIN
1,094,625
1,094,625
SAN FRANCISCO-SAN MATEO-REDWOOD CITY, CA METROPOLITAN
MARIPOSA
417,000
1,094,625
NON-METRO
MENDOCINO
417,000
1,094,625
UKIAH, CA (MICRO)
MERCED
417,000
1,094,625
MERCED, CA (MSA)
MODOC
417,000
1,094,625
NON-METRO
MONO
575,000
1,094,625
NON-METRO
MONTEREY
525,000
1,094,625
SALINAS, CA (MSA)
NAPA
643,750
1,094,625
NAPA, CA (MSA)
NEVADA
518,750
1,094,625
TRUCKEE-GRASS VALLEY, CA (MICRO)
ORANGE
737,500
1,094,625
SANTA ANA-ANAHEIM-IRVINE, CA METROPOLITAN DIVISION
PLACER
516,250
1,094,625
SACRAMENTO–ARDEN-ARCADE–ROSEVILLE, CA (MSA)
PLUMAS
417,000
1,094,625
NON-METRO
RIVERSIDE
417,000
1,094,625
RIVERSIDE-SAN BERNARDINO-ONTARIO, CA (MSA)
SACRAMENTO
516,250
1,094,625
SACRAMENTO–ARDEN-ARCADE–ROSEVILLE, CA (MSA)
SAN BENITO
937,500
1,094,625
SAN JOSE-SUNNYVALE-SANTA CLARA, CA (MSA)
SAN BERNARDINO
417,000
1,094,625
RIVERSIDE-SAN BERNARDINO-ONTARIO, CA (MSA)
SAN DIEGO
593,750
1,094,625
SAN DIEGO-CARLSBAD-SAN MARCOS, CA (MSA)
SAN FRANCISCO
1,094,625
1,094,625
SAN FRANCISCO-SAN MATEO-REDWOOD CITY, CA METROPOLITAN
SAN JOAQUIN
417,000
1,094,625
STOCKTON, CA (MSA)
SAN LUIS OBISPO
610,000
1,094,625
SAN LUIS OBISPO-PASO ROBLES, CA (MSA)
SAN MATEO
1,094,625
1,094,625
SAN FRANCISCO-SAN MATEO-REDWOOD CITY, CA METROPOLITAN
SANTA BARBARA
656,250
1,094,625
SANTA BARBARA-SANTA MARIA, CA (MSA)
SANTA CLARA
937,500
1,094,625
SAN JOSE-SUNNYVALE-SANTA CLARA, CA (MSA)
SANTA CRUZ
805,000
1,094,625
SANTA CRUZ-WATSONVILLE, CA (MSA)
SHASTA
417,000
1,094,625
REDDING, CA (MSA)
SIERRA
417,000
1,094,625
NON-METRO
SISKIYOU
417,000
1,094,625
NON-METRO
SOLANO
435,000
1,094,625
VALLEJO-FAIRFIELD, CA (MSA)
SONOMA
566,250
1,094,625
SANTA ROSA-PETALUMA, CA (MSA)
STANISLAUS
417,000
1,094,625
MODESTO, CA (MSA)
SUTTER
417,000
1,094,625
YUBA CITY, CA (MSA)
TEHAMA
417,000
1,094,625
RED BLUFF, CA (MICRO)
TRINITY
417,000
1,094,625
NON-METRO
TULARE
417,000
1,094,625
VISALIA-PORTERVILLE, CA (MSA)
TUOLUMNE
417,000
1,094,625
PHOENIX LAKE-CEDAR RIDGE, CA (MICRO)
VENTURA
650,000
1,094,625
OXNARD-THOUSAND OAKS-VENTURA, CA (MSA)
YOLO
516,250
1,094,625
SACRAMENTO–ARDEN-ARCADE–ROSEVILLE, CA (MSA)
YUBA
417,000
1,094,625
YUBA CITY, CA (MSA)

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