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Clayton sits in a weird eligibility zone. Parts qualify for USDA while others don't. You need to check the property address specifically.
Most Clayton homes price above USDA income limits. Fewer than 20% of local buyers actually qualify when you run the numbers.
USDA Loans in Clayton
Contra Costa income limits sit around $127,500 for households up to four people. Household income includes anyone 18+ living there.
You need 640 credit minimum for most lenders. Some go to 620 but rate adjustments get ugly. Zero down means mortgage insurance for the loan's life.
Local decision guide
Use this guide to connect usda loans eligibility, lender expectations, and local market factors before comparing payment options in Clayton.
Clayton sits in a weird eligibility zone. Parts qualify for USDA while others don't. You need to check the property address specifically.
Most Clayton homes price above USDA income limits. Fewer than 20% of local buyers actually qualify when you run the numbers.
Contra Costa income limits sit around $127,500 for households up to four people. Household income includes anyone 18+ living there.
USDA lenders check property eligibility before pre-approval. Half my Clayton deals fail because the house sits 200 feet outside the zone.
Processing takes 45-60 days minimum. USDA reviews every file twice. If you need to close in 30 days, this loan won't work.
I pull the USDA eligibility map before taking a Clayton application. Saves everyone time when the property doesn't qualify.
Most buyers who qualify choose FHA instead. Three percent down beats zero when you can drop mortgage insurance after hitting 20% equity.
FHA needs 3.5% down but lets you cancel insurance eventually. USDA charges lower upfront fees but insurance stays forever.
VA gives zero down without income limits if you qualify. Conventional hits 3% down at higher credit scores with better rates.
Clayton home prices run high for USDA limits. You're shopping the lower end of inventory with a $400,000 max loan amount.
Eastern Clayton near Mount Diablo has better eligibility odds. Western areas closer to Concord mostly fail the rural test.
No. USDA draws precise boundaries based on population density. Half of Clayton qualifies while developed western sections don't.
Every household member 18 and older counts. This includes adult children, parents, or roommates living at the property full-time.
Only if USDA approved the project and it sits in an eligible zone. Most Clayton condos fail one or both tests.
Plan 50-60 days from application to closing. USDA reviews files at the federal level which adds processing time.
Yes. Refinance to conventional once you hit 20% equity. This drops the insurance but requires credit and income requalification.