If saving up a down payment is the only thing standing between you and homeownership, a USDA loan may be the answer. Qualified buyers in eligible areas around Redding and Shasta County can finance 100% of their purchase price — no down payment required.
A USDA loan is a home loan backed by the U.S. Department of Agriculture that's designed to help moderate-income buyers purchase homes in eligible rural and suburban areas — including many neighborhoods just outside Redding that people don't realize qualify.
Unlike a conventional or FHA loan, a USDA loan allows 100% financing, meaning there's no down payment requirement at all. Instead of protecting the lender with a large down payment, the USDA guarantees a portion of the loan, which is what allows Von Mortgage to offer this financing with no money down.
Because the property — not just the borrower — has to meet USDA guidelines, eligibility is based on both where the home is located and how much your household earns. Many buyers assume "rural" means farmland; in practice, it includes plenty of smaller cities and suburbs.
Finance 100% of the purchase price so your savings can go toward moving costs, furniture, or your emergency fund instead of a down payment.
USDA loans are government-backed, which typically means lower interest rates than many conventional loan options.
USDA guarantee fees are generally lower than FHA mortgage insurance, which can mean a lower monthly payment over time.
USDA underwriting looks at your full financial picture, not just a single number, which can help buyers with limited or rebuilding credit.
USDA loans are fixed-rate, 30-year mortgages, so your principal and interest payment stays the same for the life of the loan.
Single-family homes, some condos, and new construction can all qualify if they sit inside a USDA-eligible area.
Pete and his team walk you through every document and form so you always know exactly what's needed next.
Because the process follows a defined USDA review step, you always know where your loan stands from application to closing day.
Already have a USDA loan? Future rate drops may qualify you for a streamlined refinance with reduced documentation.
We confirm the home's address falls inside a USDA-eligible area and compare your household income to the local limit.
We review your credit, income, and debts so you know your budget and can shop with a strong pre-approval letter.
Shop within your pre-approved range and eligible area, then submit an offer with your USDA pre-approval attached.
Your file goes through underwriting and a final USDA conditional commitment before your loan is cleared to close.
Sign your closing documents, get your keys, and move into your new home with $0 down.
| Feature | USDA Loan | FHA Loan | Conventional Loan |
|---|---|---|---|
| Down Payment | 0% | 3.5% | 3–5% typical |
| Minimum Credit Score | 640+ | 580+ | 620+ |
| Ongoing Mortgage Insurance | Annual guarantee fee | Annual MIP (often life of loan) | PMI, removable at 20% equity |
| Property Location | USDA-eligible area only | Any location | Any location |
| Income Limits | Yes — area-based | No | No |
| Loan Term Options | 30-year fixed only | 15 or 30-year | 15, 20, or 30-year |
Figures shown are general program guidelines and can vary by lender overlay and individual file. Contact Von Mortgage to confirm current numbers for your situation.
A USDA loan is a government-backed mortgage that allows eligible buyers to finance a home with 100% financing and no down payment, as long as the property is in a USDA-eligible rural or suburban area and the borrower's income falls within local limits.
With 100% financing, the loan covers the entire purchase price of the home, so you don't need to bring a down payment to closing. The USDA guarantees a portion of the loan to the lender, which offsets the added risk of not requiring money down.
Not necessarily. USDA eligibility maps include many smaller cities and suburban communities, not just farmland. Several areas around Redding and Shasta County qualify, so it's worth checking a specific address before assuming it doesn't fit.
Von Mortgage generally looks for a credit score of 640 or higher for USDA loans, though individual circumstances and compensating factors can sometimes allow for flexibility. Ask us to review your specific credit profile.
Yes. USDA loans are designed for moderate-income households, so your total household income generally can't exceed 115% of the area median income for the county where the home is located. Limits vary by location and household size.
USDA loans include an upfront guarantee fee, typically around 1% of the loan amount, plus a smaller annual fee of about 0.35% that's built into your monthly payment. This takes the place of traditional mortgage insurance and is usually lower than FHA mortgage insurance.
If you already have a USDA loan, you may be able to refinance it later through a USDA Streamlined Assist Refinance, which can lower your rate with reduced documentation and, in many cases, no new appraisal required.
Single-family homes and some approved condos or new-construction properties can qualify, as long as the home will be your primary residence and it's located inside a USDA-eligible area.
Most USDA loans close within 30 to 45 days, similar to other loan types, though timing can vary depending on the local USDA office's current review volume. Pete and his team track this closely so you always know where things stand.
Pete and his team can check your address and income against current USDA guidelines and let you know exactly where you stand — no obligation.
Or call us at (530) 221-7700
We are eager to hear from you
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