USDA Home Loans in Sacramento, CAUnderstanding Home Loan & Mortgage USDA Loans
USDA loans are primarily used to help low-income individuals or households purchase or refinance homes in rural areas.
Current Fannie Mae and Freddie Mac jumbo loan limits are to $729,750 depending on the location of the property.
USDA Loan Program features:
- No down payment requirement for qualified borrowers
- Specifically for clients who may be challenged to qualify on income for a home purchase in an eligible rural area
- Funds can be used to build, repair, renovate or relocate a home
For USDA Refinances:
Low minimum credit score requirements:
- Minimum 550 credit score
- Minimum 500 credit score if your loan is currently serviced by Carrington Mortgage Services
- Available only in certain states*
- Maximum loan amount is determined by county maximum limits and pay off amount
*Eligible states: AL, AK, AZ, AR, CA, CO, FL, GA, ID, IL, IN, KS, KY, MI, MS, MO, MT, NV, NJ, NM, NC, ND, OK, OR, RI, SC, SD, TN, TX, UT, WA, WV, WI.
What is a conventional fixed-rate mortgage?
Monthly principal and interest payments on a conventional fixed-rate mortgage remain the same for the life of the loan making it an attractive option for borrowers who plan to stay in their home for several years. The alternative to the fixed-rate mortgage is the adjustable-rate mortgage (ARM), which features lower monthly principle and interest payments during the first few years. While many prefer the security of a fixed-rate loan, an ARM may be a better option – especially if you know you’ll be moving within the next several years.
30-year fixed rate mortgages
15- and 20-year fixed-rate mortgages
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Fixed Rate Benefits and Considerations
No interest rate surprises
The best fixed rate
Fewer hoops to jump through
Refinancing options available
Fixed Rate Requirements and Qualifications
- The loan amount for a conforming mortgage is generally limited to $424,100 for a single-family home, though limits may be higher in regions where home prices are higher. Jumbo loans allow you to exceed the conforming loan limit to borrow for a higher-priced home.
- Most conventional loans will require at least 5 percent (and optimally 20 percent or more) as a down payment. For loans with lower down-payment requirements, explore government-backed mortgages like VA loans and FHA loans or speak to your Mortgage Loan officer about other options that may be available.
- Conventional loans are a good choice for borrowers with very good credit, which generally means a FICO score of 740 or higher. There are also established guidelines for income and other personal financial information.