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Chester sits in rural Plumas County where USDA financing opens doors for buyers who'd otherwise need a down payment. A $200,000 purchase at 6.125% runs $1,215 monthly for principal and interest alone.
The county's median household income of $64,946 stretches further in Chester than in coastal California. USDA loans cap borrowing at 115% of area median income, which means a household earning $75,000 qualifies comfortably.
6.125%
Interest Rate
$1,215
Monthly P&I
740
FICO Minimum
$0
Down Payment
~$75,000
Income Limit
30 years
Loan Term
USDA Loans in Chester
USDA loans require a 740 FICO minimum and zero down payment. You borrow the full purchase price with no equity injection. The upfront fee is 1% of the loan amount, and an annual fee of 0.35% gets rolled into your payment.
Income limits are the real gate here. Plumas County's median household income sits at $64,946, so the USDA cap is roughly $75,000 annually. A household earning $70,000 qualifies; one earning $85,000 does not.
Local decision guide
Use this guide to connect usda loans eligibility, lender expectations, and local market factors before comparing payment options in Chester.
Chester sits in rural Plumas County where USDA financing opens doors for buyers who'd otherwise need a down payment. A $200,000 purchase at 6.125% runs $1,215 monthly for principal and interest alone.
The county's median household income of $64,946 stretches further in Chester than in coastal California. USDA loans cap borrowing at 115% of area median income, which means a household earning $75,000 qualifies comfortably.
USDA loans require a 740 FICO minimum and zero down payment. You borrow the full purchase price with no equity injection. The upfront fee is 1% of the loan amount, and an annual fee of 0.35% gets rolled into your payment.
USDA loans are backed by the U.S. Department of Agriculture, so every lender offering them follows the same federal guidelines. There's no room for overlays or stricter rules — it's USDA or nothing.
Most USDA lending flows through mortgage brokers and correspondent lenders rather than retail banks. Brokers can shop multiple USDA-approved lenders to find the best rate and terms for your income and property.
USDA financing makes sense in Chester if your income is under $75,000 and you have no down payment saved. The zero-down feature is the whole story — conventional loans demand 5-20% down, and FHA requires 3.5%.
The trade-off is the annual fee. That 0.35% yearly charge adds $700 to your first-year payment on a $200K loan. Over 30 years, it's real money. If you can scrape together even 3-5% down, conventional PMI might cost less over time.
FHA loans also work in Chester and require only 3.5% down instead of zero. But FHA mortgage insurance never cancels if you put down less than 10%. USDA has no mortgage insurance at all — just the annual fee.
Conventional loans at 20% down ($40,000) eliminate PMI entirely and typically run a lower rate than USDA. But most Chester buyers don't have $40,000 saved.
Chester is a small mountain town in the Sierra Nevada foothills. The county's population of 19,607 means you're buying in a tight-knit community, not a sprawling suburb.
Recent USDA guideline updates have made qualification slightly easier across California. If you've been turned down before, it's worth checking current rules.
Yes — zero down is the defining feature. You can put down more if you want, but you don't have to. Most Chester buyers use USDA precisely because they have no savings for a down payment.
At 6.125% fixed, principal and interest run $1,215 monthly. Add property taxes, insurance, and the annual USDA fee (0.35% of the loan, roughly $58/month). Total housing payment is typically $1,400-$1,500 depending on your property taxes.
Plumas County's income limit is roughly $75,000 annually (115% of the county median of $64,946). If you earn less than that, you likely qualify. If you earn more, you don't. Call to verify your exact income against current USDA tables.
No — USDA has no mortgage insurance. Instead, there's a 1% upfront fee and a 0.35% annual fee. Both are built into your loan, so you don't pay them separately. This is cheaper than FHA insurance over time.
Only if the property qualifies as USDA-eligible rural. Most Chester properties do, but not all. Your lender will verify eligibility before you apply. If the property doesn't qualify, USDA won't work — you'd need FHA or conventional instead.