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Chico sits in Butte County, and parts of the area qualify for USDA financing. That means zero down payment for eligible buyers.
USDA eligibility is tied to location and income — not just credit. Many Chico-area properties fall within USDA rural zones.
640
Min Credit Score
0%
Down Payment
Rolled into loan
Guarantee Fee
30–45 days
Typical Close Time
Up to 6%
Seller Concessions
USDA Loans in Chico
USDA loans require a 640 credit score with most lenders. Below that, manual underwriting is possible but harder to get approved.
Household income must fall under the USDA limit for Butte County. That limit adjusts based on how many people live in the home.
Local decision guide
Use this guide to connect usda loans eligibility, lender expectations, and local market factors before comparing payment options in Chico.
Chico sits in Butte County, and parts of the area qualify for USDA financing. That means zero down payment for eligible buyers.
USDA eligibility is tied to location and income — not just credit. Many Chico-area properties fall within USDA rural zones.
USDA loans require a 640 credit score with most lenders. Below that, manual underwriting is possible but harder to get approved.
Not every lender offers USDA loans. The approval process runs through the USDA itself, which adds time to the close.
At SRK CAPITAL, we work with lenders who process USDA files regularly. That experience cuts down on delays.
The biggest mistake I see: buyers assume all of Chico qualifies. Always check the USDA eligibility map before you fall in love with a property.
USDA has an upfront guarantee fee and an annual fee. They work like FHA's mortgage insurance — roll the upfront into the loan.
FHA needs 3.5% down. USDA needs zero. For a buyer short on cash, that difference is real money kept in your pocket.
VA beats USDA if you're a veteran — no down, no annual fee. But USDA is the best zero-down option for non-military buyers.
Post-Camp Fire, Butte County saw major shifts in where buyers look. Some outlying areas near Chico gained USDA-eligible status.
Chico is a college town with a mix of urban core and rural fringe. The rural fringe is where USDA opens up. Know the boundary.
Parts of Chico qualify — the urban core typically does not. Check the USDA eligibility map for each specific address.
USDA income limits depend on household size and county. Check the USDA website for current Butte County figures.
USDA loans typically take 30-45 days. USDA's own review adds time beyond a standard lender approval.
The property must meet USDA condition standards. Major repairs often need to be done before or at closing.
Most USDA lenders require a 640 score. Below that, manual underwriting is required and approval is harder.
Yes. USDA's annual fee is generally lower than FHA's mortgage insurance premium. Rates vary by borrower profile and market conditions.