USDA Loans

The United States Department of Agriculture (USDA) Rural Development offers housing assistance programs to rural and suburban families throughout the country. There are two primary programs offered through the USDA. The first is the USDA Single Family Housing Guaranteed Loan Program which is available to low and moderate-income families. Guaranteed loans are offered by local vendors and are insured by the USDA. USDA Single Family Housing Direct Home Loans are offered directly by the USDA in the form of a subsidy and are available only to low and very-low income households. At Vault Mortgage Lending, we offer both guaranteed and direct USDA loans to residents of Madera, Firebaugh, Los Banos, Merced, Chowchilla, and Fresno.

USDA Rural Development Single Family Housing Guaranteed Loan Program

USDA Guaranteed Loans allow California families to purchase homes with zero money down, very low interest rates, and the ability to finance closing costs. To be eligible for the USDA Guaranteed Loan Program, borrowers must meet a few requirements.

  • Household income must be less than or equal to 115 percent of the median income for the area.
  • The home must be the borrower’s primary residence.
  • The home must be located in an eligible area.
  • Borrowers must have an acceptable credit history and be able to afford mortgage payments, taxes, and mortgage insurance.

Two different mortgage premiums are required with every USDA Guaranteed Loan. The first is an upfront premium of 1% of the purchase price. This is typically added to the borrower’s mortgage balance. The second is an annual premium equal to .35% of the annual mortgage balance. This premium is due monthly as part of your mortgage payment.

USDA Rural Development loans are an excellent home financing option for low and moderate-income families in California. At Vault Mortgage Lending, our goal is to make homeownership a reality for all families throughout Madera, Firebaugh, Los Banos, Merced, Chowchilla, Fresno. Contact us at any time for more information on California USDA loans.