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Novato's USDA-eligible properties are drawing buyers who qualify for zero-down financing. At 6.125%, a $200,000 purchase runs $1,215 monthly for principal and interest alone. That rate locks for 30 years with no balloon or adjustment.
The Marin County Fair returns July 1-5 this summer, signaling a busy season ahead for local real estate. Buyers moving to Novato now have time to close before the fair and settle into the community.
6.125%
Interest Rate
$1,215
Monthly P&I ($200K)
740
FICO Minimum
$0
Down Payment
$164,204
Income Limit (Family of 4)
30 days
Lock Period
USDA Loans in Novato
USDA loans require a 740 FICO minimum and zero down payment. Your income cannot exceed 115% of Marin County's area median income of $142,785. That ceiling sits around $164,204 for a household of four.
A $200,000 purchase on USDA terms means no down payment, no PMI, and no funding fee. The upfront fee is 1% of the loan amount. Annual fee runs 0.35% of your balance, paid monthly alongside your mortgage payment.
Local decision guide
Use this guide to connect usda loans eligibility, lender expectations, and local market factors before comparing payment options in Novato.
Novato's USDA-eligible properties are drawing buyers who qualify for zero-down financing. At 6.125%, a $200,000 purchase runs $1,215 monthly for principal and interest alone. That rate locks for 30 years with no balloon or adjustment.
The Marin County Fair returns July 1-5 this summer, signaling a busy season ahead for local real estate. Buyers moving to Novato now have time to close before the fair and settle into the community.
USDA loans require a 740 FICO minimum and zero down payment. Your income cannot exceed 115% of Marin County's area median income of $142,785. That ceiling sits around $164,204 for a household of four.
USDA loans are backed by the U.S. Department of Agriculture and sold to secondary market investors. Brokers and retail lenders both originate them, but availability varies by lender. Some shops won't touch USDA; others specialize in it.
Underwriting takes 30-45 days because USDA requires property eligibility verification and income documentation. The property must sit in a USDA-designated rural area. Novato has eligible zones, but not every address qualifies.
USDA makes sense in Novato when you're buying under $200,000 and your income sits below $164,204. Above that price or income, you hit the ceiling. Below it, zero down beats conventional's 5% down by $10,000 in cash at closing.
The annual 0.35% fee stings over 30 years, but it's baked into the rate. You're not choosing between USDA and a cheaper option—you're choosing between zero down here or 5% down elsewhere. That math favors USDA for Novato buyers who qualify.
Conventional loans at 5% down require a 20% down payment to skip PMI. USDA skips PMI entirely at zero down. That's the structural win: no insurance premium ever, regardless of LTV.
FHA loans also go down to 3.5% down but carry lifetime mortgage insurance if you put less than 10% down. USDA has no mortgage insurance at any down payment. For Novato buyers under the income cap, USDA's insurance-free structure beats FHA's lifetime MIP.
New trails just opened at Hawk Hill in the Marin Headlands, looping around the decommissioned Nike Missile Site. That kind of public land investment matters to families buying in Novato. Outdoor access holds home values steady over decades.
Super Duper's third Marin location opened in Corte Madera, just minutes from Novato. Growing restaurant and retail infrastructure signals confidence in the region's staying power. Buyers who lock in a zero-down USDA loan now benefit from that momentum.
No. USDA loans require zero down payment. You finance 100% of the purchase price with no down payment required. Income limits and property eligibility are the main gates, not cash reserves.
At 6.125% APR as of April 9, 2026, principal and interest run $1,215 monthly on a $200,000 loan. Add property taxes, insurance, and the 0.35% annual USDA fee (about $58 monthly) to get your full payment.
Your household income cannot exceed 115% of Marin County's median, which is $164,204 for a family of four. Verify your household size with your lender. Income limits vary by family size.
No. USDA loans carry no mortgage insurance at any down payment. You pay a 1% upfront fee and 0.35% annual fee instead. Neither is insurance—both are loan costs rolled into your rate and payment.
Only if the property sits in a USDA-eligible rural area. Not all Novato addresses qualify. Your lender checks property eligibility before you apply. Ask your broker to verify the address first.