CalHFA USDA Program
Program Eligibility
Review the guidelines below for both Borrower and Property Requirements to determine if you may be eligible to apply for the CalHFA USDA Program.
Borrower Requirements
- Occupy the property as a primary residence; non-occupant co-borrowers are not allowed.
- CalHFA borrowers must complete homebuyer education counseling and obtain a certificate of completion through an eligible homebuyer counseling organization.
- Meet USDA Income Limit Eligibility.
*In the case of conflicting guidelines, the lender must follow the more restrictive.
Property Requirements
- Be a single-family, one-unit residence, including approved condominium/PUDs
- Guest houses, granny units and in-law quarters may be eligible
- Manufactured housing is permitted, please check with your CalHFA-approved loan officer for specific requirements
- Condominiums must meet the guidelines of the first mortgage
- Property must be located in a USDA eligible rural area
*In the case of conflicting guidelines, the lender must follow the more restrictive.
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CalHFA USDA Program
Interest Rate
What is the interest rate?
Interest rates will vary depending on your financial circ*mstances, lender fees, and other factors. Interest rates can also change daily. We recommend that you check with a CalHFA-approved loan officer to receive an accurate rate quote for this program.
CalHFA does not lend money directly to consumers. CalHFA works through and uses approved lenders to qualify consumers and to make all mortgage loans. The fees you pay could be different depending on the lender and the program. View sample Annual Percentage Rates (APRs) here.
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CalHFA USDA Program
Homebuyer Education Requirement
CalHFA firmly believes that homebuyer education and counseling is critical to the success and happiness of a homeowner, and requires homebuyer education and counseling for first-time homebuyers using a CalHFA program.
Who has to take this Homebuyer Education and Counseling course?
Only one occupying first-time borrower on each loan transaction.
How do I take this education and counseling course?
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CalHFA USDA Program
How To Apply
How do I apply for this loan program?
Since CalHFA is not a direct lender, our mortgage products are offered through private loan officers who have been approved & trained by our Agency. These loan officers can help you find out more about CalHFA’s programs and guide you through the home buying process.
Visit the Find a Loan Officer tab, to contact a loan officer in your area.
What documents should I have ready when contacting a loan officer?
When initially contacting a loan officer, you may want to have this list of documents and information available to help answer questions that they will ask you:
- Pay stubs
- Bank statements
- Employment history
- Previous tax returns
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FAQs
Anyone who meets minimum credit guidelines (Min. 640 Credit Score) and local area income requirements can qualify for a Ohio USDA loan. In some cases, no credit score required. A Ohio USDA home loan is an affordable and great option for low-to-moderate income families, and first time home buyers.
Is it easier to get approved for FHA or USDA? ›
Lenient credit requirements: You can generally qualify for maximum FHA financing with a credit score of 580 versus a 640 score for a USDA loan. You might also be eligible with a credit score between 500 and 579 if you can make a 10% down payment.
Are USDA loans a good idea? ›
Along with no need for a down payment, USDA loans have another advantage: You could qualify for a low, fixed interest rate if you have low income. Some drawbacks, though, are that the property must be located in a USDA-approved area, and borrowers cannot exceed income limits.
How to qualify for USDA loan in California? ›
Eligibility Requirements – California
For a USDA loan in California, the household income limit for a family of 1-4 is about $111,000, and for a family of 5 or more can be as high as $314,400. Fill out the form to the right to get in touch with one of our USDA loan specialists and get started on your new loan!
How many credit scores does USDA require? ›
If the applicant has less than two credit scores, the Loan Originator must develop a credit history from at least three sources; which can be a combination of traditional and alternative credit. Non-traditional or Alternative credit is a payment history from creditors who do not report to the credit bureau.
Can USDA loan be used on Fixer Upper? ›
Can I buy a fixer-upper with a USDA loan? Yes, you can use a USDA loan to buy a fixer-upper, but there are rules. The estimated renovation cost can't be more than 10% of your loan amount. The home must also be in livable condition.
Are USDA loan payments cheaper? ›
Outside of the down payment, one of the biggest appeals of a USDA loan is that it's offered at a low interest rate. In many cases, interest rates for USDA loans are lower than rates for conventional loans. The government backing of USDA loans typically means that lenders can issue them with competitive interest rates.
What is the advantage of a USDA home loan? ›
One of the most significant benefits of USDA loans is that they do not require a down payment. This aspect is especially helpful for first-time homebuyers who may not have substantial savings for a traditional down payment.
For which buyer would a USDA loan be most appropriate? ›
USDA loans aim to help low- to moderate-income borrowers purchase decent, safe and sanitary housing located in a qualified rural area.
Why would you get denied for USDA loan? ›
One of the most common reasons for denial is income status. For a USDA loan in Hawaii, the average household income limit for a family of 1-4 people is $150,200 and for a family of 5 or more is $198,250. Furthermore, USDA loans may be denied if applicants have a significant amount of debt.
USDA Loan Eligibility
A minimum credit score of around 620 (credit score requirements might vary per borrower) A debt-to-income (DTI) ratio of 41% or less. Have an income no higher than 115% of the median household income in your area. Be financing a primary residence in a USDA-approved location.
What happens to my USDA loan if my income changes? ›
Can our payment change? Annually, the amount paid by you and Rural Development is reviewed. Your payments can change based on changes in your total household income. Usually, if your income increases, your mortgage payments will increase.
What is the USDA limit for 2024? ›
Loan Limits
As of March 2024, most of the rural areas USDA guaranteed loans cover have a standard limit of $398,600. Higher cost counties have higher limits between $431,400 and $919,800. Some counties are so high cost or densely populated that standard USDA loans aren't available.
How is USDA income calculated? ›
When calculating annual income, every adult earner in the household will be considered. Adjusted Annual Income - is calculated by subtracting qualified deductions from the annual household income. USDA qualifying income is determined by comparing adjusted annual income to the regional median income.
Can I have an USDA loan and an FHA loan at the same time? ›
Program rules typically limit you to having one FHA or USDA loan at a time.
What does USDA mean in a mortgage? ›
The U.S. Department of Agriculture (USDA) has two home loan programs: the Section 502 Guaranteed Loan and the Section 502 Direct Loan. Both help eligible buyers with low to moderate incomes to purchase homes in rural areas and small towns.
Can you get a loan to buy land in Ohio? ›
Ohio Land Loans
Whether you're looking to purchase farmland, diversify your operation, or consolidate debt, our land loans are tailored to your specific needs and backed by a team that understands the value of your land.
What is an FHA loan in Ohio? ›
If your dream home is in Ohio, but you're worried about your credit score or affording a high down payment, an FHA loan may be right for you. FHA loans were created in 1934 by the Federal Housing Administration. They are a valuable resource designed to help borrowers with less-than-perfect credit purchase a home.
What are conventional loans? ›
A conventional loan is any mortgage loan that is not insured or guaranteed by the government (such as under Federal Housing Administration, Department of Veterans Affairs, or Department of Agriculture loan programs). Conventional loans can be conforming or non-conforming.
