While applying for a home loan in Los Angeles, you might think to look into popular government-insured programs like FHA loans. But have you thought about applying for a USDA home loan?
USDA loans are insured by the US Department of Agriculture (USDA). Originally, the USDA loan program was called the “Rural Development Guaranteed Housing Loan” program. Because a USDA loan is backed by the government, lenders are able to offer you amazing advantages that you would not get with conventional financing. You could even move into an LA home with zero down.
Applying for a USDA loan in Los Angeles might sound odd. Los Angeles is home to around 4 million people after all, and practically defines “sprawl.” How could you qualify for a rural housing loan? Well, it all comes down to the fact that what “rural” means to you and what “rural” means to the USDA are not necessarily the same.
According to the USDA, if an area’s population is no more than 35,000, it is “rural,” even if you might think of it as “suburban.” That means that there are areas near LA where you may qualify for this type of loan and be able to reap the benefits.
With a USDA loan, you may be able to move into a new home in Los Angeles with zero down payment.
You can look forward to paying a low, fixed mortgage rate.
Your closing costs should be low compared to what they might be for a corresponding conventional loan.
Credit qualifications are flexible, so you can still qualify for all these great benefits even if your score is not perfect.
While you may need to purchase private mortgage insurance (PMI), discounts on your premiums may be available.
Whether you want to buy an existing home, build one, make repairs or upgrades, or even buy land for a future home, a USDA loan can provide you the affordable financing you need.
To qualify for a USDA loan in LA, you must meet these requirements:
You need to be a legal resident of the US.
USDA loans do carry income caps, so your income will need to fit under those limits.
You need to be shopping for a home which is in a “rural” location. This is according to the USDA’s definitions.
Your intended house must be a maximum of 2,000 feet.
There are additional considerations for the house as well in regards to your finances which may be taken into account.
Ready to find out whether you might be eligible for a USDA loan in LA with zero down payment and a competitive interest rate?
I would love to help you go over your qualification details and assist you in applying for a USDA home loan.
If you are ready to begin, please call me today at (818) 601-2231 to schedule your consultation. You could soon be moving into a Los Angeles home with zero down payment.
Shannon Christenot is an Equal Housing Lender. As prohibited by federal law, we do not engage in business practices that discriminate on the basis of race, color, religion, national origin, sex, marital status, age, because all or part of your income may be derived from any public assistance program, or because you have, in good faith, exercised any right under the Consumer Credit Protection Act. Disclaimer: Programs subject to change without notice. All borrowers must qualify per program guidelines.