San Diego's #1 0% Down USDA Home Loan Secrets Revealed in 2021
(Please note - these loan amounts are updated for 2021)
In this video I break down secrets you might not know of the $0 down USDA mortgage loan right here in San Diego.
As a friendly reminder, this mortgage loan is great for anyone that wants to live on the outskirts of San Diego (think Fallbrook, Pauma Valley, Ramona, Julian, Palomar Mountain, Campo, etc), doesn't have a down payment, extremely low interest rates (think low to mid 2's), and lower monthly mortgage insurance than an FHA or conventional loan.
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Without further ado - let's jump into the USDA home loan secrets you might not be aware of.
Secret #1 - Very Little Cash Out of Pocket
We already know that we can get 100% financing with a USDA loan. But, we can also finance in the 1% up front loan guarantee. And, we can also ask the seller to pay closing costs, use a lender rebate (video explains), or a combination of the 2. That limits our cash down, limits cash for closing costs, and keeps more money in your pocket. Expect to put about .5% to 1% of the sales into escrow as the good faith deposit (fully refundable if we get enough in closing costs), expect to pay a licensed home inspector about $500 +/- directly, expect to pay a licensed home appraiser about $500 +/- directly, and that's about it.
Secret #2 - Higher Income Limits Than You Might Think
Here is the direct link where you can check and see what the max income is allowed, for you, in San Diego, based on your family size - but, I have checked a family of 2, a family of 3, and a family of 4 - and the max income allowed is $136,500 per year or $11,375 per month.
Secret #3 - Lower Monthly Payments Than a Conventional or FHA Loan
The great thing about the USDA loan is the fact that, generally speaking, has a lower 30 year fixed interest rate than an FHA or conventional loan, has a lower upfront guarantee than an FHA loan does (conventional doesn't have one), and lower monthly mortgage insurance than an FHA or conventional loan.
Secret #4 - Works in More Areas Than You Might Realize
Yes, it is address specific and only works on the outskirts of San Diego - but, you might be surprised which areas might be included based on it's address. Parts of Oceanside, Vista, Bonsall, Fallbrook, Rainbow, Pauma Valley, Escondido, Borrego Springs, Ramona, Alpine, Boulevard, Campo, Descanso, Dulzura, Jacumba, Jamul, Julian, Lakeside, Mount Laguna, Palomar Mountain, Pine Valley, Potrero, Santa Ysabel, and others.
Secret #5 - You Do *Not* Need to Be a First Time Home Buyer
It doesn't matter if you have never owned before, or have, the USDA loan is fine for anyone. While there are some down payment assistance programs that are just for FTHB - the USDA loan is not.
Bonus Secret #6 - Other $0 Down Options Available
If the USDA loan doesn't work for you - maybe due to location, or debt to income ratio issues, or max income allowed, etc - there are other options available. If you have been, or are, in the military you can get a $0 down VA loan - and, of course I have down payment assistance loans as well.
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5 San Diego USDA Loan Secrets Revealed!