Question 1

Do I need to be a farmer to qualify for a USDA loan in Rancho Santa Margarita?

Accepted Answer

No. USDA loans are open to any qualified buyer in an eligible rural area. Rancho Santa Margarita qualifies. You need a 740 FICO, income under $130,757, and debt-to-income under 41%. Occupation doesn't matter.

Question 2

What's my monthly payment on a $200,000 USDA loan at today's rate?

Accepted Answer

At 5.625% APR on a $200,000 loan, principal and interest run $1,151 per month. That's before property taxes, insurance, and the annual USDA fee of 0.35% of the loan balance ($700 first year, paid monthly).

Question 3

Is there mortgage insurance on a USDA loan?

Accepted Answer

No. USDA loans carry zero mortgage insurance. You pay an annual fee of 0.35% instead, which is roughly $700 on a $200,000 loan. That fee is lower than FHA's lifetime insurance and disappears if you refinance to conventional later.

Question 4

What's the income limit for USDA loans in Orange County?

Accepted Answer

The limit is 115% of the county's median household income: roughly $130,757 for a single applicant. The county's actual median is $113,702, so most households here qualify. Limits are higher for larger families.

Question 5

How long does a USDA loan take to close?

Accepted Answer

USDA loans typically close in 45–60 days. They're slower than conventional (30 days) because the USDA must guarantee the loan after closing. Brokers often close faster than retail banks due to smaller underwriting teams.

USDA 30-Year Fixed in Rancho Santa Margarita: Zero Down, No PMI