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USDA Loans in Gustine
Gustine sits squarely in USDA-eligible territory. Most residential properties here qualify for zero down payment financing through the USDA Rural Development program.
This loan type was designed for communities like Gustine. You're not competing with Bay Area spillover the way other Merced County cities are, which means lower purchase prices and easier income qualification.
USDA loans work especially well for first-time buyers here. You can finance closing costs and avoid the PMI that comes with conventional zero-down options.
Your household income can't exceed 115% of the area median. For Merced County, that's roughly $104,000 for a family of four in 2024.
Credit requirements are flexible. Most lenders approve borrowers at 640, though some go down to 620 with compensating factors.
You need stable income for two years. W-2 earners fit this program perfectly, but self-employed borrowers with consistent tax returns also qualify.
The property must be your primary residence. No investment properties or vacation homes qualify for USDA financing.
Not every lender handles USDA loans. The ones who do often have 30-45 day closing timelines because the USDA must review and approve every file.
We work with lenders who specialize in rural financing. They know how to structure these deals and move them through USDA underwriting efficiently.
Rate shopping matters here. USDA rates vary more between lenders than conventional rates do, sometimes by half a point or more.
Some lenders layer on overlays requiring 680 credit or zero credit events. We find lenders who follow actual USDA guidelines, not made-up restrictions.
USDA loans beat FHA in Gustine every time. You avoid the upfront mortgage insurance premium and get a lower monthly guarantee fee.
The income limit trips up fewer people than you'd think. Most Gustine households fall well below the threshold, and overtime doesn't always count against you.
Property condition matters more than with conventional loans. USDA won't approve homes with peeling paint, broken windows, or roof issues. Budget for repairs or negotiate seller credits upfront.
Closing costs run 2-3% of purchase price. You can roll these into the loan if the appraisal supports it, which happens frequently in Gustine.
FHA requires 3.5% down plus an upfront insurance premium of 1.75%. On a $350,000 home, that's $12,250 down plus $6,125 in upfront fees. USDA requires zero.
Conventional loans need 3-5% down and charge PMI until you hit 20% equity. USDA's guarantee fee is lower and can be financed into the loan.
VA loans match USDA on zero down payment, but you need military service to qualify. USDA just needs moderate income and a rural property.
Gustine properties almost always appraise at purchase price. There's not enough transaction volume to create artificial bidding wars, which helps your loan-to-value work out cleanly.
Wells and septic systems are common here. USDA requires well water testing and septic inspections, adding $400-600 to your closing costs.
Properties within Gustine city limits qualify. Some rural addresses outside town may fall into ineligible zones, but that's rare in Merced County.
Ag-zoned land can complicate USDA approval. If the property includes farmland or commercial agriculture use, we may need to structure it differently or switch loan programs.
No. USDA requires properties to be move-in ready with no major repairs needed. Cosmetic updates are fine, but structural or safety issues disqualify the property.
Sometimes. If you've worked consistent overtime for two years, lenders may exclude it. Sporadic overtime usually doesn't count toward the income cap.
Expect 35-45 days from application to closing. USDA reviews every file centrally, which adds time compared to conventional loans that close in 21 days.
Only if it includes a livable home. Raw land doesn't qualify, and the acreage can't exceed what's typical for the area, usually one acre or less in Gustine.
You won't qualify. USDA doesn't allow exceptions to income caps. Consider FHA or conventional loans instead, both of which have no income restrictions.
You can finance it into the loan amount. The fee is 1% of the loan balance, much lower than FHA's 1.75% upfront premium.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.