Question 1

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

Accepted Answer

No — USDA loans require zero down payment. You borrow 100% of the purchase price. The trade-off is an income ceiling and property eligibility requirement.

Question 2

What's the monthly payment on a $200,000 USDA loan in Irvine?

Accepted Answer

At 5.625% interest (APR 5.682%), the principal and interest payment is $1,151 per month on a $200,000 loan. That's before property taxes, insurance, and the annual USDA guarantee fee of 0.35%.

Question 3

Do USDA loans have mortgage insurance?

Accepted Answer

No — USDA loans carry no mortgage insurance. Instead, there's a 1% upfront guarantee fee ($2,000 on a $200,000 loan) and a 0.35% annual fee. Over ten years, that's far cheaper than conventional PMI, which runs 3-4% annually.

Question 4

How long does a USDA loan take to close in Irvine?

Accepted Answer

Expect 45-50 days from application to funding. USDA loans require property eligibility verification with the USDA, which adds 5-7 days compared to conventional loans.

Question 5

What credit score do I need for a USDA loan?

Accepted Answer

You need a 740+ FICO score. Lenders also pull two years of tax returns and verify employment history going back two years. Self-employed borrowers need a CPA letter confirming income stability. Debt-to-income ratio must stay under 41%.

USDA 30-year fixed loans in Irvine: zero down, fixed rate, primary residence financing