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USDA Loans in Hollister
Hollister sits in one of California's prime USDA-eligible zones. Most neighborhoods outside the immediate downtown core qualify for zero-down financing.
San Benito County's rural designation makes USDA loans more accessible here than in neighboring counties. You can buy within city limits and still hit program requirements.
This loan type works especially well for first-time buyers priced out of Santa Clara County. Hollister offers suburban living without the Bay Area premium.
USDA sets income caps at 115% of county median income for most households. In San Benito County, that means roughly $110,000-$125,000 for a family of four.
You need a 640 credit score minimum for automated approval. Some lenders go to 620 with compensating factors like stable employment or cash reserves.
The property must be your primary residence in a USDA-eligible zone. No investment properties or vacation homes qualify under this program.
Not every lender handles USDA loans. We work with about 30 wholesale lenders who actively close these deals in San Benito County.
Processing takes 35-45 days on average. USDA adds an extra eligibility review layer that conventional loans skip.
Rates typically run 0.25%-0.50% lower than FHA. You also avoid the upfront mortgage insurance premium that FHA charges.
The guarantee fee is 1% upfront plus 0.35% annual. Still cheaper than FHA over a 30-year term.
I tell Hollister clients to verify property eligibility before making offers. The USDA map gets updated, and some subdivisions lose eligibility over time.
Sellers here understand USDA timelines. This isn't the Bay Area where everyone expects 21-day closes.
Commission-based income needs two years of history. If you're self-employed in agriculture or local business, expect heavy documentation.
Some buyers assume rural means farmland. You can buy a regular single-family home in a neighborhood and still qualify.
FHA requires 3.5% down and charges higher insurance. USDA eliminates the down payment and costs less monthly.
Conventional loans need 5%-20% down for competitive rates. If you're cash-light but income-qualified, USDA wins.
VA loans beat USDA on cost and flexibility, but you need military service. For civilian buyers, USDA is the only true zero-down option.
Hollister's growth puts pressure on USDA boundaries. Newer developments near Highway 25 sometimes fall outside eligible zones.
San Benito County income limits stay lower than Bay Area counties. What qualifies you here might not work in Gilroy or Morgan Hill.
Appraisals move slower in rural-designated counties. Build extra time into your contract contingencies.
Property condition matters more with USDA than conventional. Wells, septic systems, and outbuildings need proper inspection and approval.
Most areas outside downtown core qualify. We verify exact eligibility using the USDA map before you make an offer.
Yes, if the home is permanently affixed to land you own. The property must meet HUD code and USDA condition standards.
USDA caps income at 115% of county median. Family size affects the exact limit, typically $110K-$125K for four people.
Most lenders want 640 for automated underwriting. Some accept 620 with strong employment history or cash reserves.
Plan for 35-45 days from application to closing. USDA adds eligibility verification that conventional loans skip.
Yes, but only modest acreage for a primary residence. Large parcels intended for farming or commercial use don't qualify.
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.