No More USDA Home Loan Approvals w/ Bank of America in CA? Did BofA Discontinue All 100% Financing?

Is Bank of America no longer issuing USDA Rural home loan approvals in California?  Did Bank of America discontinue all 100% financing mortgage programs in California?

I’ve been asked these two questions several times recently from real estate agents and prospective home buyers wanting to purchase a home in the Riverside County USDA eligible areas of Temecula, Menifee, Murrieta, Wildomar, Corona, Sun City and Winchester.  Here is what I found out.  usda home loans riverside county california

Did you know the monthly payment on a California USDA Rural  ‘no down payment’ loan is actually less than an FHA loan that requires a 3.5% down payment!

The answers?  Yes (I think) and No.

Yes – BofA has discontinued the USDA loan in California.  I have a peer who works for Bank of America Mortgage in California who told me they no longer offer the 100% USDA Rural Development home mortgage program.  Say it ain’t so.  Why would they discontinue such a helpful and vital home purchase loan program?  I have no idea.  The 100% USDA Guaranteed California Home Loan has been growing in popularity these last few years, it is well funded, and proves to have a lower default rate than an FHA loan. 

Maybe Bank of America’s slogan, ‘Bank of Opportunity’ has little meaning when referring to home buyers?

No – BofA still offers the VA home home in California.  I think Bank of America still offers the Dept. of Veterans Affairs VA home loan which is a similar 100% financing program to the USDA loan but available only to our country’s military and retired Veterans.  This too is a very useful and effective home loan to use when buying a home.

Obviously, Bank of America is one of the largest USDA lenders in California.  With BofA no longer approving and funding USDA loan in California, there will be some sort of impact on home buyers in counties or areas eligible for USDA financing.

The biggest impact may be that Bank of America will never discloses to a USDA eligible home buyer that 100% financing may be available to them.  If they did, the home buyer would likely go elsewhere for their home loan, right?  I see even less transparency ahead for Bank of America loan officers as they purposely avoid disclosing all available loan programs to a home buyer.

How would you feel if after you bought a home, you found out there was a better loan option that your Bank of America loan officer neglected to tell you about?


Prospective home buyers will need to turn to the other California mortgage lenders or brokers to help with their USDA loan approval.  Fortunately, my employer is still approving and funding USDA Rural Development home mortgage loans in California.

If you have any insight about BofA no longer approving and funding USDA loans in California, feel free to comment below or voice your opinion.

Call (951) 215-6119 to learn how a Preferred Buyer Advantage loan approval can help get your offer accepted over other buyers when using a USDA Rural home loan.  Or email me direct: brad(at)

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