Question 1

What's the monthly payment on a $200,000 USDA loan at today's rate?

Accepted Answer

At 5.625% with 0.435 discount points, the P&I payment is $1,151 monthly on a $200,000 loan. Add property taxes, insurance, and the 0.35% annual USDA fee ($700 on $200K), and your total monthly payment runs roughly $1,500–$1,700 depending on your...

Question 2

Do I need to be a first-time homebuyer to qualify for USDA?

Accepted Answer

No. USDA loans are open to any buyer who meets the income and credit requirements. You must have a 740 FICO, income under 115% of area median, and a property in a USDA-eligible rural area. Prior homeownership doesn't disqualify you.

Question 3

Is my Oakland address USDA-eligible?

Accepted Answer

Most of Oakland is not USDA-eligible because the program targets rural areas. You'll need to check your specific address on the USDA's online map.

Question 4

What's the difference between USDA and FHA for zero-down buyers?

Accepted Answer

USDA has no mortgage insurance—just a 0.35% annual fee. FHA requires mortgage insurance for life if you put down less than 10%. Over 30 years, USDA saves you thousands.

Question 5

How long does a USDA loan take to close?

Accepted Answer

USDA loans typically close in 45–60 days because the USDA guarantees the loan after closing. That's slower than conventional (30–40 days) but faster than some FHA loans. Your lender will verify your income against USDA tables, which adds time.

USDA 30-Year Fixed in Oakland: Zero-Down Financing for Eligible Properties