 |  | For the majority of people, real estate terms and specifics can be a bit of a foreign language and can be really hard to digest. In my experience, this issue is compounded even further when discussing loans and financing details which are typical in the purchase/sale of real estate. I have been told that this structure was a conscious effort to try and create separation between the general public and the professionals who work in the finance/real estate sector, which wouldn't surprise me at all, and is a whole other topic to discuss, but I digress. The most common loan type in real estate is a conventional loan, which has a range of downpayment requirements, typically from 3% - 20% and also has higher credit requirements than some other loan types. Another less common option is a United States Department of Agriculture loan, or USDA loan. These differ in that they have no downpayment requirement and have lower credit requirements than conventional loans, however, they do have a few extra stipulations that other loans don't. USDA loans come with a household income limit of $110,000.00 for a family of four, and the only approved property type for USDA loans is single family. Additionally, USDA loans are ineligible for population dense areas, which are determined by census data. For example, up until this year, USDA loans were not available to buyers within Eureka City limits, but because of a dip in the city's population, they are now eligible to use within Eureka's city limits! If you have any questions or want clarification on the details of different loan types, I highly recommend giving Humboldt Home Loans a call at (707) 269-2334.
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