Question 1

Is Pacific Grove eligible for USDA loans?

Accepted Answer

Most Pacific Grove addresses do not qualify. The city's density disqualifies it under USDA rural area rules. Check the official USDA map for your specific address.

Question 2

What is the USDA income limit in Monterey County?

Accepted Answer

Monterey County limits are higher than many California counties due to area median income adjustments. Exact limits depend on household size — confirm with a USDA-approved lender.

Question 3

Can I use a USDA loan to buy in nearby rural areas?

Accepted Answer

Yes. Some Monterey County areas outside Pacific Grove may qualify. Rural Carmel Valley and unincorporated areas are worth checking on the USDA eligibility map.

Question 4

What credit score do I need for a USDA loan?

Accepted Answer

Most USDA lenders require a 640 minimum. Some lenders approve below that with manual underwriting, but it's rare and takes longer.

Question 5

How does USDA mortgage insurance compare to FHA?

Accepted Answer

USDA charges an upfront guarantee fee plus an annual fee. FHA charges an upfront premium and monthly MIP. USDA's annual fee is typically lower than FHA's MIP.

Question 6

What if I don't qualify for USDA in Pacific Grove?

Accepted Answer

FHA, VA, and CalHFA programs all serve Pacific Grove buyers without area restrictions. We can compare those options based on your credit and income profile.

USDA Loans in Pacific Grove, CA — Zero Down in Monterey County