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King City sits in the Salinas Valley — and that location matters. USDA designates much of this area as rural-eligible.
Zero down financing is rare in California. King City buyers who qualify for USDA have a real edge over FHA borrowers needing 3.5% down.
0%
Down Payment
640+
Target Credit Score
Rural areas only
Property Eligibility
County-based cap
Income Limit
30-45 days
Est. Close Time
USDA Loans in King City
USDA has two hard requirements: the property must be in an eligible area, and your income must fall under the local limit.
Most lenders want a 640 credit score for USDA's automated approval. Below that, files go manual — harder but not impossible.
Local decision guide
Use this guide to connect usda loans eligibility, lender expectations, and local market factors before comparing payment options in King City.
King City sits in the Salinas Valley — and that location matters. USDA designates much of this area as rural-eligible.
Zero down financing is rare in California. King City buyers who qualify for USDA have a real edge over FHA borrowers needing 3.5% down.
USDA has two hard requirements: the property must be in an eligible area, and your income must fall under the local limit.
Not every lender does USDA. Many banks skip it entirely because the approval process takes longer than conventional loans.
We work with wholesale lenders who close USDA loans regularly. That experience cuts delays and prevents last-minute surprises.
USDA charges two fees: an upfront guarantee fee and an annual fee. Both are lower than FHA mortgage insurance.
The upfront fee rolls into the loan. Your out-of-pocket at closing can be near zero if the seller covers closing costs.
FHA requires 3.5% down and higher monthly mortgage insurance. USDA beats it on both counts — if you qualify.
VA is still the top option for veterans. For everyone else in King City without a down payment, USDA is the strongest program available.
King City's agricultural economy means many buyers here are seasonal or self-employed workers. Income documentation is critical for USDA.
As of April 2026, USDA rural maps still include King City. Those boundaries can shift — confirm eligibility before you go under contract.
As of April 2026, King City falls within USDA rural-eligible boundaries. Always confirm the specific property address before making an offer.
USDA sets limits by county and household size. Check the USDA eligibility portal for current Monterey County figures — they update annually.
No. USDA is a zero down program. You may still need funds for closing costs unless the seller agrees to cover them.
USDA has no down payment and lower monthly fees than FHA. The trade-off is stricter income limits and property location requirements.
Yes, but income documentation is strict. Expect two years of tax returns and a thorough review of your adjusted gross income.
USDA loans typically take 30-45 days. Files requiring manual underwriting or USDA conditional commitment can run longer.