USDA Loans

The Silicon Valley USDA loan program offers advantages over other loan programs if the house that you are buying meets the location requirements for the USDA program. You can see if the property that you are considering meets the USDA loan requirements by checking the USDA loan eligibility database.

Silicon Valley USDA Loan Program Highlights:

  • Truly a 100% home loan
  • No down payment required
  • No up front or monthly mortgage insurance
  • No cash reserve requirements
  • Officially – no minimum credit score – unofficially – need at least a 620 credit score
  • No loan limits
  • Down payment assistance is okay
  • Can finance up to 102% of the appraised value of the home
  • Seller concessions are allowed (seller can pay the closing costs)
  • Rates are usually about the same as FHA loans

Silicon Valley USDA Loans: A True 100% Home Loan

In the Silicon Valley, when you buy a house with the USDA loan program, no down payment is required and you are able to finance up to 102% of the property’s appraised value. This makes the USDA loan program very popular with many first time home buyers who want to stretch to get into that first house and don’t want to spend all of their reserves on their down payment.

Silicon Valley USDA Loans: No Up Front or Monthly Mortgage Insurance

With the Arizona USDA loan program, another advantage is that there is no up front mortgage insurance (UFMIP for FHA Loans) and no monthly mortgage insurance (both FHA and Conventional loans). Because there is no up front and no monthly mortgage insurance, you can expect to save up to thousands of dollars each year on your monthly mortgage payments with the Silicon Valley USDA loan program.

Silicon Valley USDA Loans: No Loan Limit

The USDA loan program will allow you to finance “as much as you can afford”.  There is no official loan limit with the Silicon Valley USDA loan program, but the amount of money that you can borrow depends on your ability to repay the loan.

Silicon Valley USDA Loans: Seller Concessions Are Allowed

With the Silicon Valley USDA loan program, you can get the seller to pay as many of your closing costs as you can.  There are no limits on “seller concessions”, so negotiate the best deal that you can!  Many loan programs limit the amount of seller concessions that you can have, but the Silicon Valley USDA loan program doesn’t put a limit on them.

Certainly the USDA loan program is one of the best options for many people to buy a house here in the Silicon Valley.  Is it the only option? Certainly not. This is why it makes the most sense to speak with one of our mortgage experts who can help you find the best possible home financing options for your individual situation.