USDA Loans Offer 100% Financing In Rural Areas

The USDA Home Loan is a little known mortgage option available to home buyers in rural areas of California and the rest of the U.S.   And there are a lot of areas that are considered rural, even areas that are less than 1 hour drive from cities like San Diego, Los Angeles, San Francisco, and San Jose.  This is really a super loan program that not many take advantage of because they don’t know about it.

Advantages of USDA Home Loan:

  • 100% financing, NO down payment required
  • No monthly mortgage insurance (unlike FHA and conventional loans (with <20% down) that carry monthly mortgage insurance
  • Great 30 year fixed interest rates
  • You do not have to be a first time home buyer to get this loan
  • Seller can pay for all your closing costs

Here are some other factoids about USDA Home Loans:

  • Your income needs to be within 115% of the area median
  • Has to be your primary residence and 1 unit only

Here is an example of some areas in California that qualify for USDA Loans:

San Diego County

  • Alpine, Ramona, Valley Center, Campo, Julian, Rainbow, Pauma Valley

Riverside County

  • Desert Hot Springs
  • Coachella
  • Sun City
  • Winchester
  • Idyllwild

San Bernardino County

  • Lake Arrowhead
  • Big Bear

Imperial County

  • Almost the entire county

Sonoma County and Napa

  • Windsor, Healdsburg, Guerneville, Calistoga, St. Helena, and much more

Contra Cost, Alameda, Solano

  • Byron, Rio Vista, Isleton

Placer, Sacramento, San Joaquin, El Dorado

  • Lincoln, Auburn, Ripon, Lathrop

Central Valley Counties

  • Tehachapi, lots of the towns surrounding Bakersfield, Fresno, Modesto, Merced, Redding and more qualify

Monterrey, Santa Cruz, San Luis Obispo, Santa Barbara, Ventura

  • Boulder Creek, Scotts Valley, Moss Landing, Prunedale, San Juan Bautista, Paso Robles, San Miguel, Morro Bay, Solvang, Santa Ynez, Carpentaria, Ojai

That is just a brief example of some areas.  In the rural counties of the state, you can assume most of the county is eligible. 

So give us a call or email today if you have any questions about USDA Rural Development Home Loans.  Direct 858-922-7899 and email

Warm Regards,

Rob Chomentowski

Sr. Loan Officer

858-922-7899 (direct)

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