Guaranteed by the USDA (United States Department of Agriculture), this program might make you think that you have to buy farmland or live "in the country" to qualify, but this is often not the case. In fact, you might be surprised to see just how many neighborhoods actually do qualify as rural development areas. For this program, the term "rural" really applies to those areas with a lower population or fewer homes, not necessarily those areas and neighborhood far outside of the city.

There are several benefits of the USDA loan program besides no money down. The program also does not require private monthly mortgage insurance, and the seller is allowed to pay all of your closing costs and pre-paid items up to 6.00% of the total sales price of the property. And while this is great news for first-time home buyers, it’s important to note that you don’t have to be a first-timer to qualify for a USDA loan. However, in most cases you cannot own another property at the time of closing a USDA mortgage.

Other than the location of the property you’re seeking to buy, there is one other limitation to this valuable program that you must consider: your income. Luckily, however, these numbers have recently increased to allow more potential buyers take advantage of this special program. For households in San Diego County, with up to four people, the income limit can be over $95,000 (every area will be different). In households where 5-8 people reside, the income limitation can be over $124,800 (again, every area will be different). These income limitations are guidelines and, in some cases, may be exceeded.

To find out more about USDA loans, give Milo Grecian a call at 619-549-1372. I can have an answer as to whether you qualify for this program in just a few minutes.