Question 1

What's the monthly payment on a $200,000 USDA loan in San Leandro?

Accepted Answer

At 6.125% APR on a $200,000 USDA 30-year fixed, principal and interest run $1,215 monthly. Add property taxes, insurance, and the 0.35% annual USDA fee (about $58/month). Total housing payment is roughly $1,400–$1,500 depending on the property.

Question 2

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

Accepted Answer

No. USDA doesn't restrict repeat buyers. You just need to meet the income limit (115% of county median, or $145,176), have a 740+ FICO, and buy in a USDA-eligible area. Repeat buyers qualify the same way as first-timers.

Question 3

What happens if my household income exceeds $145,000?

Accepted Answer

You're ineligible for USDA. The income limit is a hard ceiling with no exceptions. At $145,176, you're at the maximum for Alameda County. A dollar over and USDA is off the table. Conventional or FHA become your options.

Question 4

Does USDA require mortgage insurance like FHA does?

Accepted Answer

No mortgage insurance. Instead, USDA charges a 1% upfront guarantee fee and 0.35% annual fee. Over 30 years, that costs far less than FHA's lifetime mortgage insurance. You avoid the monthly insurance premium entirely.

Question 5

How long does a USDA loan take to close in California?

Accepted Answer

USDA closings typically run 45–50 days because the USDA must approve the loan after underwriting. Conventional closes in 30–35 days. FHA runs 35–40 days. The extra time is the tradeoff for zero-down financing.

USDA 30-Year Fixed in San Leandro: Zero-Down Financing for Eligible Buyers