Question 1

Do I need to put money down on a USDA loan?

Accepted Answer

No. USDA loans require zero down payment. You buy with no down payment and no mortgage insurance. The trade-off is a 0.35% annual fee on your loan balance.

Question 2

What's my monthly payment on a $200,000 USDA loan?

Accepted Answer

At 6.125% interest, principal and interest run $1,215 monthly. Add property taxes, insurance, and the 0.35% annual USDA fee (about $58 monthly on $200K). Your total housing payment will be higher.

Question 3

What income do I need to qualify for USDA in Arcata?

Accepted Answer

Maximum income is 115% of Humboldt County's median, which is roughly $70,305 annually. Humboldt County's median household income is $61,135, so most local buyers fall well below the ceiling.

Question 4

Is my Arcata property eligible for USDA financing?

Accepted Answer

Most of Humboldt County qualifies, but some parcels near Arcata proper fall outside USDA boundaries. Always verify your specific address with your lender before applying. Eligibility is property-specific, not city-wide.

Question 5

How does USDA compare to FHA for zero-down buying?

Accepted Answer

FHA requires 3.5% down and charges mortgage insurance for life (if under 10% down). USDA is truly zero down with no mortgage insurance. USDA costs less over 30 years if you qualify by income.

USDA 30-Year Fixed Loans in Arcata: Zero Down, Rural Financing for Humboldt County Homes