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Berkeley's real estate market is shifting as Golden Gate Fields transforms into a public shoreline park. That kind of infrastructure investment matters for long-term home values.
USDA loans are rare in Berkeley proper because most of the city sits outside USDA-eligible rural zones. But if your property qualifies, the zero-down structure changes the math entirely.
6.125%
Interest Rate
$1,215
Monthly P&I
640
FICO Minimum
0%
Down Payment
$145,176
Income Cap
45-50 days
Typical Close
USDA Loans in Berkeley
USDA loans require a 640 FICO minimum and zero down payment. Your property must sit in a USDA-eligible rural area — most of Berkeley doesn't qualify, but some neighborhoods near the city edges do. Call to verify your address.
Income limits are the real gate here. If you earn above 115% of area median, you don't qualify. Below that, USDA pulls you through with no down payment and no mortgage insurance. The upfront fee is 1% of the loan amount, and you'll pay 0.35% annually.
Local decision guide
Use this guide to connect usda loans eligibility, lender expectations, and local market factors before comparing payment options in Berkeley.
Berkeley's real estate market is shifting as Golden Gate Fields transforms into a public shoreline park. That kind of infrastructure investment matters for long-term home values.
USDA loans are rare in Berkeley proper because most of the city sits outside USDA-eligible rural zones. But if your property qualifies, the zero-down structure changes the math entirely.
USDA loans require a 640 FICO minimum and zero down payment. Your property must sit in a USDA-eligible rural area — most of Berkeley doesn't qualify, but some neighborhoods near the city edges do. Call to verify your address.
USDA loans are tighter than FHA or conventional in California. Most retail lenders carry them, but overlays vary widely. Some require 680+ FICO; others stick to 640. Appraisals run stricter because USDA properties sit in rural zones where comps are sparse.
Brokers typically have better USDA pricing than banks because they shop multiple lenders. Retail banks often layer on extra overlays that kill deals. The secondary market for USDA is smaller than conventional, so rate sheets move slower.
USDA makes sense in Berkeley only if your property qualifies and your income sits below $145,176. If both boxes check, zero down is unbeatable. You skip PMI, skip the down payment, and keep cash in hand. The 6.125% rate is competitive for a zero-down product.
The catch: most Berkeley addresses don't qualify. The city's urban core sits outside USDA zones. If you're buying in the hills or near the Oakland border, check eligibility first.
FHA runs lower rates than USDA but carries lifetime mortgage insurance if you put less than 10% down. USDA has no mortgage insurance at any down payment — that's the structural win. On a $200,000 loan, USDA saves you $100-150 monthly versus FHA with 3.5% down.
Conventional at 20% down has no mortgage insurance either, but you need $40,000 cash upfront. USDA asks for zero. If you have the cash and qualify for conventional, the rate might run 0.25% lower.
Golden Gate Fields is becoming a public shoreline park — 155 acres of waterfront that the East Bay Regional Park District will manage. That's a major amenity shift for the neighborhoods near the bay.
Berkeley Restaurant Week in April brings 74 restaurants into the fold. Cafe Bolita just opened with heirloom corn masa dishes. These aren't just lifestyle perks — they signal neighborhood investment and foot traffic.
Most of Berkeley's urban core doesn't qualify because USDA requires rural-eligible properties. Neighborhoods near Oakland or the city edges may qualify. You must verify the exact address with USDA's eligibility map or call us to check.
At 6.125% interest (APR 6.182%), the principal and interest payment is $1,215 monthly on a $200,000 loan with zero down. That's for a 30-year fixed, 740 FICO, primary residence, locked 30 days as of April 13, 2026.
No — USDA requires zero down payment. You pay a 1% upfront fee ($2,000 on a $200K loan) and 0.35% annually, but both roll into the loan. Nothing comes due at closing. That's the core advantage over conventional or FHA.
USDA caps borrowers at 115% of Alameda County's median household income, which is $145,176. If you earn above that, you don't qualify. Below that, income is not a barrier — credit and property eligibility matter more.
FHA runs lower rates but charges mortgage insurance for life if you put down less than 10%. USDA has zero mortgage insurance at any down payment.