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Merced County, California FHA, VA, and USDA Loan Information

Seal of Merced County

Table of Contents

What are the government loan limits in Merced County, CA?

What parts of Merced county are eligible for USDA loans?

Do I need flood insurance?

How do I learn about Property Taxes in Merced County

What is the median home price in Merced County, CA?

How many people live in Merced County?

What are the major cities?

How do I see FHA- and VA-Approved homes for sale?

Is there a cost to have a real estate agent represent me?

What closing costs do I need?

How can I get assistance with closing costs?

How to Buy a Home in Merced

About Merced County

Approved Condominium Projects in Merced County

How much of a loan can I qualify for, based on my income?

FAQ

What are the government loan limits in Merced County?

  • FHA Loan Limit $409,400 (Single family residence) / $524,100 (Duplex) / $633,500 (Triplex) / $787,300 (Fourplex)
  • USDA Loan Limit $373,750
  • VA Home Loan Limit $0 down up to $3,000,000 / 2 open VA loans at one time $510,400*(Call 888-573-4496 for details).


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What parts of Merced county are eligible for USDA loans?

All of Merced County is eligible for USDA Rural Development loans.

Eligible Zip Codes: 95410, 95415, 95417, 95420, 95427, 95428, 95429, 95432, 95437, 95445, 95449, 95454, 95456, 95459, 95460, 95463, 95466, 95468, 95469, 95470, 95481, 95482,95488, 95490, 95494, 95585, 95587

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Do I need flood insurance?

The USDA, FHA, and VA all require people to purchase flood insurance on homes located in Special Flood Hazard Areas. In Merced County there are many flood plains, especially in the low-lying areas. Your agent can help you to check whether a property will require flood insurance.

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How do I learn about Property Taxes in Merced County?

For questions about property tax, you can get in touch with the Merced County Assessor, Katrina Bartolomie. Her office is located at 501 Low Gap Road, Room 1020 Ukiah, CA 95482

Veterans, owner-occupiers, and senior citizens may be eligible for property tax relief. You can find out whether you qualify through the county assessor. In addition, the Assessor’s Office can do re-appraisals to determine property values and flood risks.


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What is the median home price in Merced County, CA?

As of March 2020, the median home price in Merced County is $664,700 and the median household income is $49,233.

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How many people live in Merced County?

Merced County has a population of 87,606.

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What are the major cities?

The largest city in Merced County is the county seat at Ukiah, which has a population of 16,075. The next-largest city is Fort Bragg, with a population of 7,273. The other cities and communities all have fewer than 5,000 residents.

How do I see FHA- and VA-Approved homes for sale?

You can view all of the properties available for sale in Merced County through the Multiple Listing Service. You can also see approved condos at the bottom of this page.

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Is there a cost to have a real estate agent represent me?

The seller must pay real estate professionals’ commission, not the buyer. This means that, as a homebuyer, there is no cost to have a real estate agent represent you. In fact, it’s a good idea to get your own agent in order to have someone in your corner during the negotiation process.

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What closing costs do I need?


For FHA loans, closing costs can end up being 3-4% of the loan amount. These costs include origination fees from the lender, any discount points purchased for a better interest rate, and pre-paid items like insurance and taxes.

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How can I get assistance with closing costs?

There are several ways to reduce the amount you have to pay at closing. One way is to get down payment assistance. The FHA’s Within Reach program provides grants to help low- and middle-income families with their down payment. There is also the CalHome program, which offers down payment assistance and to reduce or finance other closing costs.

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How to Buy a Home in Merced County

Are you interested in buying a home in Merced? This is a step by step guide to all the ins and outs of the homebuying process. For more detail about FHA loans, be sure to check out our complete guide. We also have an in-depth guide to VA loans and the USDA’s Rural Development home loan program.
For now, let’s look at the basic steps to buying a home – and what you’ll have to look out for in Merced County.

  1. Get in touch with a loan officer – give us a call at 877-432-5626

    We can help you figure out what type of loan you might qualify for. Programs through the VA, USDA, and FHA allow you to buy a home with a small down payment – or no down payment at all. We will also check your credit and income to see how much of a loan you can qualify for. When we do this, we do a “soft pull” on your credit. This is different from an official credit inquiry and won’t hurt your credit score.

  2. Compare loan offers.

    Either call us or fill out the form on this page.

  3. Give your Loan Officer the information they need to find you a loan

    For a purchase loan or cash-out refinance:

    • Your ID
    • Previous two years of W2s
    • Most recent 30 days paystubs
    • Most recent 60 days bank statements
    • Landlord and HR/Payroll Department contact info

    For a refinance loan, you will also need information on the loan you want to refinance.


  4. Compare Loan offers

    Compare the interest rates and APRS – but keep in mind that the fixed- and adjustable-rate mortgages are apples and oranges. Use the Loan Estimate to compare the true costs of each loan, both month-to-month and over the life of the mortgage.

  5. Find a home

    Get connected with a FedHome Loan Centers Real Estate Agent. Once you meet with them to talk about your wants and needs, you can sign up for the property search feed. This will give you alerts about homes for sale in Merced County. Now you’re ready to preview properties and start touring homes.

  6. Make an offer and negotiate the terms of the sale

  7. Get the necessary and recommended inspections

    Required Inspections:

    • Termite Inspection
    • Well or septic inspections, if applicable
    • We can help you check if your home is in one of the Merced County flood hazard areas.

    Recommended Inspections:
    Home Inspection, Roof Inspection, Sewer Inspection

  8. Get the home appraised

    Construction loans require a construction appraisal and permit approval

  9. Lock in your interest rate

    Pro Tip: Wait until the appraisal to lock in your loan rates. If it turns out you need to make repairs, it can push the closing back. Then you run the risk of losing that rate or having to pay an extension fee.

  10. Close the deal and get packing!

    You’re ready to go!

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About Merced County

Merced County is located right in the heart of California’s San Joaquin Valley. This region is known as the breadbasket of the US (and, in fact, much of the world) because of its agricultural production. In addition, while Merced is away from the bustle of California’s biggest cities, the I-5 runs through the county and connects it to the rest of the state.

Business

While agriculture is Merced’s main industry the county also has a strong base in food processing, retail, and auto manufacturing. For example, the city of Los Banos is a world leader in tomato processing. Plus, many firms are choosing Merced County as a base because it allows them access to the San Francisco Bay Area while still providing affordable housing prices.

The City of Merced is the county’s cultural and economic hub. In addition to its connection to California’s main highway system, it is also home to a major train station. The downtown area has plenty of exciting restaurants, shops, and nightlife.

Education

Contributing to Merced’s vibrant energy are the county’s two local options for higher education, Merced College and the University of California, Merced. UC Merced was the first research university built in the 21st century and connects the county to one of the world’s premier educational systems.

Outdoor Living

The county is also home to plenty of green space. There are two national wildlife preserves along the river, where you can hike or bike along miles of trails. Plus, the City of Plenada, on the county’s eastern edge, contains one of the entrances to Yosemite National Park. Residents don’t just enjoy the park’s natural beauty but the droves of tourists it brings to the region each year.

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Approved Condos in Merced County

There are currently no approved condominiums in Merced. If you want to get a condo approved, follow this link. At FedHome Loan Centers, we can get almost any condo approved.

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How much of a loan can I qualify for, based on my income?

Monthly Income Purchase Price
$2,628.90 $195,175.91
$2,832.00 $210,254.55
$3,181.50 $236,202.27
$3,612.00 $268,163.64
$3,985.50 $295,893.18
$4,361.10 $323,778.64
$4,971.90 $369,125.91
$5,761.50 $427,747.73
$6,892.20 $520,625.00
$5,199.60 $368,791.82
$5,743.80 $408,815.91
$6,249.90 $450,287.73
$6,998.10 $501,960.45
$9,776.70 $725,845.91
$5,568.00 $413,381.82
$6,574.80 $488,129.09
$7,569.60 $561,985.45
$5,141.40 $381,710.00
$6,345.30 $471,090.45
$7,639.80 $567,197.27
$8,360.10 $620,674.09
$9,260.70 $687,536.82
$10,095.30 $749,499.55
$12,165.00 $903,159.09
$13,929.60 $1,034,167.27
$17,511.00 $1,300,059.09
$18,406.80 $1,366,506.06

Purchase Price subject to credit and income evaluation.

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