USDA 100% Home Loan

USDA 100% Home Loan

USDA loans are a great resource if you’re looking to purchase a home in what USDA considers a “rural” area.  To find out if the property you’re interested in qualifies CLICK HERE.  USDA also has income limits; you can find them by CLICKING HERE.

Essentially if the property you’re looking to purchase is in a USDA rural area and you meet the income limits you can purchase the home with nothing down.  You will need to pay closing costs which can be up to 3% of the purchase price or increase your interest rate to cover them.


Here are the rest of the details:

-Minimum 620 credit score

-1 unit owner occupied property only

-No manufactured homes

-Upfront guarantee fee of 1%

-Annual guarantee fee of .35%

-100% gift funds allowed

-$417,000 max loan amount

-Mandatory tax and insurance impound account

-Non-occupant co-borrower not allowed

-No Foreclosures or short sales in the past 3 years

-Chapter 7 bankruptcy discharged in the previous 3 years

-Chapter 13 bankruptcy that has yet to complete repayment or has completed payment in the most recent 12 months

-Max 40 acres


An example of a USDA loan payment:

 $400,000 purchase price with nothing down

1% upfront funding fee = $4,000

Total loan amount is $404,000

Principal and interest payment at 3.25% = $1758

Monthly mortgage insurance = $118

Monthly property tax payment = $417

Monthly home owners insurance payment = $70

Total monthly payment = $2363


When you’re ready to get pre-approved give us a call!


Michael Regan (NMLS 275695) is a mortgage banker serving Sonoma, Marin, Napa, and San Francisco Counties. You can reach him at 707-508-8473 or 415-672-2499.