Real Estate

A window of opportunity could soon close

Some El Dorado Hills homebuyers could soon miss out if they don’t act.

Let me explain.

For years now the United States Development Agency has offered “Rural Development” loans designed to help home buyers in “rural” areas throughout the United States.

The USDA defines “rural” as a community with a population base of approximately 20,000.

Nationwide, we could see a reduction of as much as 40 to 50 percent in the number of USDA Rural Development purchase mortgages as a result of population growth. While the program will continue for most of El Dorado County, there’s a good chance that properties within El Dorado Hills … will no longer qualify.

Here’s why. The USDA recently announced that as of Oct. 1 of this year (the start of their fiscal year) they will begin basing eleigibility on the 2010 census data.

In the 2000 census the population in El Dorado Hills was 18,016. By the time the 2010 census was completed that number had grown to 42,108 (or 23 percent of the total in El Dorado County).

That’s a large segment of the population base who may not be able to take advantage of many benefits of the USDA Rural Development Loan Program. Such as:

  • 100 percent financing … or … no down payment required
  • Flexible credit guidelines
  • Expanded qualifying ratios
  • Low monthly mortgage insurance
  • Permanent buy-downs are allowed
  • Condominiums, duplexes and townhouses may be eligible
  • Mortgage Credit Certificate, gift funds, grant funds are allowed
  • Seller concessions of up to 6 percent of the purchase price are allowed
  • Moderate income limits apply and eligible deductions assist more homebuyers to qualify
  • No maximum loan amount (however most lender use the conforming loan limit of $417,000)
  • Existing, new construction, modular and some “new” manufactured homes can be eligible

Over the past few years we’ve had literally dozens of clients close escrow on their purchase with less than $500 total cash out of pocket.

Interested buyers should call their Realtor or loan professional ASAP. We often only see opportunities like this in the rear view mirror … once their gone!

Helpful Websites:

General information —

Eligibilty information —

Loan information —

Steve Kellerman can be reached at (916) 812-5547 or by e-mail at [email protected]

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