USDA Loans

Written by Rob Breiner

September 19, 2023

The U.S. Department of Agriculture (USDA) offers a unique mortgage program designed to promote homeownership in rural and suburban communities. USDA loans are backed by the government and are available to eligible individuals and families looking to purchase a home outside major metropolitan areas.

There are many unique benefits to the USDA Loan:

1) 0% down payment – This is the only $0 down loan available to all prospective buyers without having to use a down payment assistance program or having to be eligible for the $0 down veteran loan.

2) Can finance the full appraised value, even in excess of the purchase prices – Normally, your loan is based on the lesser of the price you pay for a  home or the appraised value. For example, if you buy a house for $400,000 and the home appraises for $415,000, your financing is based on the lesser of those 2; $400,000. The USDA loan is different. In that example, you could finance the full $415,000 and use the extra $15,000 to pay for closing costs or to permanently buy down your rate. The only limitation is you can’t receive the difference directly; all excess funds must go towards closing costs.

There are other notable things to consider when using the USDA loan to purchase a home.

You must earn under the income limit in your County based on your household size and rates for households of 1-4 people, and households of 5 or more people. Income limits are up to $196k+/yr in certain high-costs areas.

The property must be located in an eligible USDA are, typically outside major cities and high-density areas, however, you might be surprised at some areas that you’d consider dense that does all the USDA loan.

Watch our video above for more details and some examples of eligible USDA areas in Southern California

Click here to apply for a home loan


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Robert Breiner. Licensed Loan Officer NMLS# 1199942 | BRE# 01960372 Golden Bear Capital Inc. DBA Click Mortgage | 10174 Old Grove Road Suite 140​, San Diego, CA 92131​ | Phone: 888-440-3001 | Fax: 888-500-5815 Golden Bear Capital Inc. DBA Click Mortgage (NMLS# 284021) is licensed by the California Department of Business Oversight (CFL License# 603H185) and the California Bureau of Real Estate (License #01847011), Nevada Division of Mortgage Lending License #4043), Utah Division of Real Estate (License #6332409), Washington Department of Financial Institutions (CL-284021).

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