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USDA loans offer zero down payment financing — but Sacramento's urban core doesn't qualify. Eligible properties sit in designated rural and suburban zones outside city limits.
Sacramento County has pockets that meet USDA's rural definition. Think outskirts, not midtown. Buyers willing to look beyond the city center can access serious financing advantages.
0%
Down Payment
640 (recommended)
Min Credit Score
Rural/Suburban zones only
Property Eligibility
Applies at closing
Upfront Guarantee Fee
30-45+ days
Typical Close Time
USDA Loans in Sacramento
USDA loans have two hard requirements: income limits and location eligibility. Both must pass — not one or the other.
Most lenders want a 640 credit score for automated underwriting. Below that, files go manual and approvals get much harder. Rates vary by borrower profile and market conditions.
Local decision guide
Use this guide to connect usda loans eligibility, lender expectations, and local market factors before comparing payment options in Sacramento.
USDA loans offer zero down payment financing — but Sacramento's urban core doesn't qualify. Eligible properties sit in designated rural and suburban zones outside city limits.
Sacramento County has pockets that meet USDA's rural definition. Think outskirts, not midtown. Buyers willing to look beyond the city center can access serious financing advantages.
USDA loans have two hard requirements: income limits and location eligibility. Both must pass — not one or the other.
Not every lender handles USDA files. Some banks avoid them entirely due to the extra USDA approval layer and longer timelines.
As a broker with access to 200+ wholesale lenders, we can match USDA borrowers to lenders who actually work these loans regularly. Experience matters here.
The biggest mistake I see: buyers fall in love with a property, then find out it's not USDA-eligible. Check the USDA eligibility map before you start shopping.
USDA also charges an upfront guarantee fee and an annual fee. These replace private mortgage insurance — but you still pay. Factor both into your cost comparison.
FHA loans require 3.5% down and allow urban properties. USDA beats FHA on down payment but loses on location flexibility.
VA loans also offer zero down — with no annual fee. If you're eligible for VA, run that comparison first. USDA is the best zero-down option for non-veterans in eligible zones.
Sacramento's eligible USDA zones are real — but shrinking as development expands. Areas that qualified last year may not qualify today. Always verify current maps.
As of April 2026, buyers targeting unincorporated Sacramento County or adjacent rural areas have the strongest shot at USDA eligibility. A broker familiar with local boundaries saves time.
Most of Sacramento's urban core does not qualify. Eligible properties are typically in rural or suburban areas of Sacramento County outside city limits.
USDA income limits depend on household size and county. Check the USDA income eligibility tool directly — limits adjust periodically.
USDA loans typically take longer than conventional. Expect 30-45 days minimum — USDA must approve the file after your lender does.
Most lenders require a 640 score for automated approval. Lower scores require manual underwriting, which is harder to get through.
The property must meet USDA condition standards. Significant repairs may disqualify a home — it cannot be in poor structural condition.
No. USDA has no first-time buyer requirement. You must meet income and location rules, but prior homeownership does not disqualify you.