3 Requirements of USDA Loans – Being a farmer not one of them

3-Requirements of USDA Loans

3 Requirements of USDA Loans – Being a farmer not one of them

This week on The Mortgage Minute, we are going to go over the 3 eligibility requirements of USDA loans.

The Mortgage Minute is weekly informational series presented by Laura Borja, Your San Diego Home Loan Expert

First, what is a USDA loan?

A USDA loan is a loan that is guaranteed by the US Department of Agriculture. USDA loans allow up to 100% financing, aka No Money Down.

Requirement #1-  Occupancy

The program can only be used to purchase owner occupied properties. Second homes and investment properties are not eligible for USDA financing.

Prefer video to reading? Then check out the this video.

Requirement #2-  Property Eligibility

The property does need be located in a designate eligible area.

The map below shows you the eligible areas surrounding San Diego County.
Properties in the lighter tan areas are eligible for USDA financing. Eligible areas include places like Fallbrook, Bonsall, Valley Center, Ramona, Alpine and Julian.

San Diego Areas- USDA Loans

Requirement #3 – Income Limits

The program does have income limits which are based on the number of people in the household, however, they are pretty high.

Household of 1-4 Persons: $100,500
Household of 5-8 persons: $132,650

What else should I know about USDA Loans?


You DO NOT need to be a first time homebuyer to use USDA Financing.

There is Mortgage Insurance.
The program does have both an upfront guarantee fee of 1% plus monthly insurance that is currently .35%.
Now that upfront guarantee fee does not have be paid in cash at closing. You are allowed to roll it into your financing.

For more details regarding USDA loans, including DTI and Credit score guidelines, please contact me.

Give me a call – 619-992-4061
Send me an email
Text USDAINFO to 44222
Or connect with me on Social Media

Thanks for checking out this week’s The Mortgage Minute. See you next week!

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