USDA Loan

USDA Loans are designed to help homebuyers purchase properties in eligible rural and suburban areas—often with zero down payment. Backed by the U.S. Department of Agriculture, this program supports affordable homeownership in growing communities across California.

At HomeBound Lending, we make the USDA loan process simple and stress-free—so you can focus on finding the right home, not the fine print.

Why Choose a USDA Loan?

• $0 Down Payment – One of the few programs that requires no money down

• Low Monthly Payments – Competitive interest rates and reduced mortgage insurance

• Flexible Credit Guidelines – Ideal for moderate-income buyers

• Available in Many California Areas – Not just for farms—many suburban neighborhoods qualify

Who Can Qualify?

To be eligible for a USDA loan in California, you typically need:

• A credit score of 640+ for streamlined approval

• Stable income and employment

• U.S. citizenship or permanent residency

• The property must be in an eligible rural or suburban area (we’ll help you check!)

• Meet income limits based on household size and location (varies by county)

• Must use the home as a primary residence

   

What’s Required?

When applying for a USDA loan, be ready to provide:

• Photo ID and Social Security number

• Recent pay stubs, W-2s, and tax returns

• Bank statements and asset documentation

• Verification of current rent or housing history

• Signed purchase contract (once you’re ready to move forward)

What About Mortgage Insurance?

Instead of traditional mortgage insurance, USDA loans include:

• Upfront Guarantee Fee: 1% of the loan amount (can be financed into the loan)

• Annual Fee: About 0.35% of the loan balance, added to your monthly mortgage payment

This is generally lower than the cost of mortgage insurance on FHA or low-down-payment conventional loans.

Let’s See If You Qualify

You might be surprised how many California areas are USDA-eligible—including neighborhoods near cities. Whether you’re a first-time buyer or just looking for affordable financing, we’ll help you check eligibility and walk you through your options.

See If You Qualify for a USDA Loan
📞 Questions? Reach out to our team at 877-771-2244 or Contact Us Here — we’re ready when you are!