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Clearlake sits in Lake County, a federally designated rural area. That matters because USDA eligibility is tied to location — and Clearlake qualifies.
Zero down payment financing is rare. In a county where incomes run lean, USDA fills a gap that conventional loans simply can't touch.
640
Min Credit Score
0%
Down Payment
1% of loan amount
Upfront Guarantee Fee
0.35% of balance
Annual Fee
30–45 days
Est. Close Time
USDA Loans in Clearlake
You need a 640 credit score for automated underwriting. Below that, manual underwriting is possible but harder to place.
Income limits apply. USDA caps household income at 115% of the area median. Every person in the home counts — not just borrowers on the loan.
Local decision guide
Use this guide to connect usda loans eligibility, lender expectations, and local market factors before comparing payment options in Clearlake.
Clearlake sits in Lake County, a federally designated rural area. That matters because USDA eligibility is tied to location — and Clearlake qualifies.
Zero down payment financing is rare. In a county where incomes run lean, USDA fills a gap that conventional loans simply can't touch.
You need a 640 credit score for automated underwriting. Below that, manual underwriting is possible but harder to place.
Not every lender offers USDA loans. Some approve the file, then can't close because they lack USDA authorization.
We work with 200+ wholesale lenders. Several specialize in rural California files — Lake County included. That's where rate shopping actually helps.
USDA has two fees: an upfront guarantee fee and an annual fee. Both are lower than FHA's mortgage insurance. That difference adds up over time.
The annual fee runs for the life of the loan — same as FHA. But the rate you lock and the upfront cost are typically better. Run the numbers before defaulting to FHA.
FHA requires 3.5% down. VA requires zero — but only for veterans. USDA is the only zero-down path for non-veterans buying in rural areas.
Conventional loans need 3-20% down and stronger credit. For a Clearlake buyer with a 660 score and no savings, USDA is often the only workable option.
Lake County has faced wildfire risk and insurance challenges. Some lenders add overlays — extra requirements beyond USDA's minimum guidelines.
Appraisals in rural counties can also run slow. Build extra time into your purchase contract. A tight close date on a USDA file in Clearlake is a risk.
Yes. As of April 2026, Clearlake qualifies as a USDA-eligible rural area. Eligibility can change — confirm the specific property address before you write an offer.
USDA sets limits at 115% of area median income. Lake County's median runs lower than coastal California, so limits here are more accessible for most buyers.
Yes, but lenders require a well water test and septic inspection. Budget time and money for both — they're not optional on rural properties.
Typically 30-45 days. USDA files need a second approval from the Rural Development office, which adds time beyond a standard conventional close.
USDA charges a guarantee fee, not mortgage insurance — but the effect is similar. The upfront fee is 1% and the annual fee is 0.35% of the loan balance.
The home must meet USDA's minimum property standards at closing. Significant deferred maintenance can kill the appraisal — ask us before you make an offer.