100% USDA Rural Home Loans in Sonoma County

100% USDA Rural Home Loans in Sonoma County

100% financing, with no MI?  Yes!  In Sonoma County, "rural areas" are eligible for USDA Rural Development home loans.  This is a gov't insured loan for owner occupied single family homes for moderate income household incomes in Sonoma County.  Rates are great (www.sonomacountyhomeloans.com) and there are no limits on loan amount or price limits.  The home loan consists of one 30 year fixed loan at a rate that runs about .25% over the day's FHA rate.

Income and Asset Limits

This special 100% Sonoma County home loan insured by USDA has income restrictions.  In Sonoma County, household income is limited to a generous $92,000 for up to 4 in a household.  In a household of 5-8 income can go up to $121,450.  Assets are also limited to 20% of the purchase price.  So a buyer with less $60,000 in assets (savings, investments) is eligible to buy up to a $300,000 sale price home in Sonoma County.

Eligible Sonoma County Locations

A large area of Sonoma County is eligible for this 100% USDA Rural home loan.  Excluding Santa Rosa up to Larkfield, Rohnert Park/Cotati, city of Sonoma and Petaluma, the rest of Sonoma County is eligible.  Included are communities like Healdsburg, Sebastopol, Cloverdale, Windsor, all Russian River area, Graton, and Sonoma Valley along Hwy 12.

Details

Some of the attractions of this USDA Rural Development home loan is for 100% of the purchase price, it will allow a 6% interested party contribution, requires no reserves, FICO scores can be as low as 620, and it can be used for a single family home, PUD, or a condo in a HUD or Fannie Mae approved condo project.  Some of the restrictions are that it can only be used for a single family dwelling, the debt-to-income ratio (DTI) is limited 47% with a 660 FICO, and the loan requires a guarantee fee.  Also, the property site cannot be worth more than 30% of the total property value, limiting the size of the parcel to a specifc valuation percentage.  The appraisal is done by a HUD certified appraiser and all section one of any produced termite report needs to be cleared.

The guarantee fee goes to the USDA Rural Development Department and is 2% and can be financed as part of the loan.

This is an excellent loan for any Sonoma County home buyer looking to buy in Windsor, Cloverdale, Healdsburg, Sebastopol or anywhere around the Russian River with no money down.