Question 1

Do I need a down payment for a USDA loan in Novato?

Accepted Answer

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.

Question 2

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

Accepted Answer

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.

Question 3

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

Accepted Answer

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.

Question 4

Do USDA loans have mortgage insurance like FHA?

Accepted Answer

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.

Question 5

Can I use a USDA loan to buy any house in Novato?

Accepted Answer

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.

USDA Loans in Novato: Zero Down, Fixed Rate for Rural Properties