A USDA home loan is a government-backed mortgage program from the U.S. Department of Agriculture. It’s designed to help buyers in rural and suburban communities purchase homes with zero down payment and affordable fixed interest rates.

No. USDA loans allow for 100% financing, making them one of the few mortgage programs that truly requires no down payment.

Most lenders look for a 640 credit score to qualify for automated approval, but some borrowers may be approved with lower scores through manual underwriting.

Yes. USDA loans are designed for low-to-moderate income families. Income limits vary by county and household size in California, so it’s important to check eligibility for your area.

USDA loans are available in designated rural and some suburban areas. Many communities just outside major cities in California may qualify — even if they don’t feel “rural.”

USDA loans can be used for:

• Single-family homes

• Some townhomes and condos

• New construction in eligible areas Investment properties and vacation homes are not allowed — the home must be your primary residence.

Yes, but it’s less expensive than FHA. USDA loans require:

• A one-time upfront guarantee fee (usually rolled into the loan)

• A small annual fee, paid monthly, that’s lower than FHA’s mortgage insurance.

USDA loans often take a little longer than conventional loans because they require approval from the USDA after lender underwriting. Typical timelines range from 30–45 days, depending on volume.

Yes.