USDA Loans

Rural Development Made Possible with USDA Loans

USDA loans provide home financing to people with low to moderate income who are interested in purchasing property in rural and suburban areas. These are nonconventional loans insured by the federal government and funded by private lenders. For eligible-income households who might not qualify for conventional financing these mortgages create a pathway to homeownership. The West Coast Realty Services team has the unique combination of local expertise and the power of top national lenders on our side. We’re here to answer your questions about home loans for purchase in rural areas near Lake Forest, Anaheim, and Santa Ana, and we offer free quotes. Contact us today.

USDA Loan Origins and Basics

USDA loans are one of several types of nonconventional loans, which are distinguishable from conventional loans because they are backed by various departments of the federal government. In the case of USDA loans, that department is the U.S. Department of Agriculture. The USDA’s Single Family Housing Guaranteed Loan Program allows eligible borrowers to build, rehabilitate, improve or relocate a dwelling in certain rural zones using a USDA loan. Not only does this program help candidates succeed as homeowners, it also helps encourage the development of less populated areas and reduces overcrowding in urban areas.

Because they’re insured through the federal government, USDA loans are of minimal risk to the lenders who offer them. Because of this, USDA loans are available to a broad range of clients, including those with less-than-great credit and who may not qualify for other home loans. They have competitive, fixed interest rates for qualifying candidates.

Personal and Property Eligibility

Income eligibility for USDA and other nonconventional financing programs is established based on the median income in a given area; that is, applicants must not exceed 110% of the local median income. Income limits for rural areas surrounding Lake Forest, Anaheim and Santa Ana are:

  • $103,650 for a 1-4-person household
  • $135,800 for a 5-8-person household

In addition to meeting income eligibility, applicants must

  • Have U.S. citizenship or be a U.S. national or Qualified Alien
  • Agree to use the loan to purchase and live in a home as a primary residence – which means they can’t be used to purcahse second or vacation homes
  • Show supportive documents like paystubs and W2s that show their ability and intention to make monthly payments

The property you purchase with the help of the USDA Single Family Housing Guaranteed Loan Program must prove to be adequate, modest, decent, safe and sanitary. A USDA-approved inspector will determine if a home meets these requirements. And of course, the home must be located in a USDA-verified rural or suburban coverage area.

USDA Loan Uses

You can use a USDA loan for all types of ventures. A few of these are:

  • The purchase of a new or existing residential property
  • The repair or rehabilitation of a property
  • Refinancing of an existing loan
  • Design improvements to improve accessibility for a disabled household member
  • Site preparation costs such as foundation placement or driveway or fencing installation
  • The purchase of essential household equipment like refrigerators, washers, dryers, carpting, or ovens

Great Opportunities in Rural Homeownership

Even if you’ve previously thought you were ineligible for home financing through traditional means, you may want to reconsider. With 0% down and easy qualifying, these loans are hard to beat. When you’re ready to learn more about financing a home in the rural metro area of Lake Forest, Anaheim, or Santa Ana, contact West Coast Realty Services first. We offer no obligation quotes for USDA loans and other mortgages.