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USDA Loans in San Juan Bautista
San Juan Bautista qualifies for USDA financing because San Benito County has significant eligible rural areas. Most properties outside the immediate downtown core meet USDA's population density requirements.
This program makes sense here. Buyers who don't qualify for VA loans can purchase without a down payment. Income limits filter out high earners, but many working families in San Benito County fall within the thresholds.
USDA financing works particularly well for properties on larger lots or outside city limits. The program was designed for exactly this kind of small California town surrounded by open land.
You need a 640 credit score minimum at most lenders. Some go down to 620 but expect rate hits. Income can't exceed 115% of area median, which is $106,950 for San Benito County in 2024.
The property must be your primary residence. No second homes or investment properties qualify. Lenders check debt-to-income ratios at 41% maximum, though some allow higher with compensating factors.
Employment history matters. Two years in the same field shows stability. Self-employed borrowers need two years of tax returns showing consistent income within USDA limits.
Not every lender handles USDA loans. The program requires specific approval from USDA Rural Development. Processing takes longer than conventional loans because USDA reviews every file.
SRK CAPITAL works with multiple USDA-approved lenders across our wholesale network. This matters because overlays vary significantly. One lender might decline a 625 credit score while another approves it.
Timeline runs 45-60 days typically. USDA requires property appraisals plus extra underwriting steps. Sellers in San Juan Bautista need to understand this isn't a 30-day close.
The 1% guarantee fee surprises borrowers. USDA charges this upfront, though you can finance it into the loan. There's also a 0.35% annual fee built into monthly payments.
I see buyers stretch too far because zero down feels free. Run numbers assuming property taxes and insurance. San Benito County property taxes average 1.1%, which adds up on monthly payments.
Income verification kills deals. USDA counts all household income, including adult children living at home. A son making $40k working in Gilroy can push you over limits even if he's not on the loan.
FHA requires 3.5% down but has higher income limits. That matters in San Benito County where some families exceed USDA thresholds but still need low down payment options.
Conventional loans need 3-5% down but cost less long-term. Mortgage insurance drops off at 20% equity. USDA's annual fee lasts the loan's life unless you refinance.
VA loans beat USDA for eligible veterans. No down payment, no mortgage insurance, and better rates. But most San Juan Bautista buyers aren't veterans, making USDA the best zero-down option.
Check property eligibility first. Use USDA's online map before falling in love with a house. Some newer developments near Highway 156 fall outside eligible boundaries.
San Juan Bautista's small inventory means competition. Sellers favor conventional or cash offers over USDA due to longer timelines. A strong preapproval letter from an experienced USDA lender helps.
Well and septic properties work fine if systems meet USDA standards. The appraiser inspects mechanical systems more thoroughly than conventional appraisals. Budget for potential repairs flagged during inspection.
$106,950 for households of 1-4 people. Larger households get slightly higher limits. All working adults in the home count toward this total.
Most properties qualify, but check USDA's eligibility map first. Some central areas may fall outside eligible zones due to population density.
Expect 45-60 days from application to closing. USDA adds extra review layers that conventional loans skip.
640 is standard minimum. Some lenders go to 620 but charge higher rates and require stronger compensating factors.
Yes, USDA charges 1% upfront and 0.35% annually. This is lower than FHA but lasts the entire loan term unless you refinance.
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.