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Gridley sits squarely in USDA-eligible territory. Most of Butte County's smaller cities qualify for this zero-down program.
That matters here. Buyers who can't scrape together a 3-5% down payment have a real path to ownership in Gridley.
0%
Down Payment
640
Min Credit Score
0.35%
Annual Guarantee Fee
1% (financeable)
Upfront Guarantee Fee
45-60 days
Typical Close Time
USDA Loans in Gridley
USDA has two main hurdles: location eligibility and income limits. Gridley clears the location test easily.
Income limits are set by household size and county. Butte County limits are moderate — most working families in Gridley will qualify.
Local decision guide
Use this guide to connect usda loans eligibility, lender expectations, and local market factors before comparing payment options in Gridley.
Gridley sits squarely in USDA-eligible territory. Most of Butte County's smaller cities qualify for this zero-down program.
That matters here. Buyers who can't scrape together a 3-5% down payment have a real path to ownership in Gridley.
USDA has two main hurdles: location eligibility and income limits. Gridley clears the location test easily.
Not every lender does USDA loans. Many banks don't bother — volume is too low for them to maintain approval status.
Wholesale lenders are a different story. We work with USDA-approved lenders across 200+ options, so Gridley buyers aren't stuck with one bank's rate sheet.
The biggest mistake I see: buyers assume they earn too much. USDA income limits are based on household size. A family of four qualifies at a higher ceiling than a single buyer.
USDA also charges a guarantee fee instead of traditional PMI. It's lower than FHA mortgage insurance over time — that affects your monthly payment more than most buyers realize.
FHA requires 3.5% down and charges 0.55% annual MIP. USDA requires zero down and charges 0.35% annually. For buyers who qualify, USDA wins on monthly cost.
Conventional loans need at least 3% down and good credit. VA is zero down but requires military service. USDA is the only zero-down option for civilian buyers in Gridley.
Gridley's agricultural roots and small-city size work in buyers' favor here. USDA was built for exactly this type of community.
Butte County has seen housing demand shift north after recent years of regional displacement. Getting pre-approved fast matters — good listings in Gridley move.
Yes. Gridley meets USDA rural eligibility requirements. Most properties within city limits will qualify, but always verify the specific address at the USDA eligibility site.
Limits vary by household size. Larger households qualify at higher income ceilings — don't assume you're over the limit without checking.
Most USDA lenders require a 640 score minimum. Some lenders go lower with strong compensating factors, but 640 is the reliable floor.
Budget 45-60 days. USDA files need a second review by the Rural Development office, which adds time beyond a standard loan.
The property must meet USDA condition standards. Significant repairs may need to be completed before closing — not ideal for heavy fixer-uppers.
For buyers who qualify, usually yes. Zero down and lower annual insurance make USDA the stronger monthly payment option when income limits are met.