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Lemon Grove sits in San Diego County's USDA-eligible zone, where a $200,000 purchase at 6.125% runs $1,215 monthly for principal and interest. Zero-down USDA financing opens the door for buyers who qualify on income.
USDA loans carry an annual fee of 0.35% on the loan balance, plus a 1% upfront fee rolled into closing costs. That structure replaces the down payment requirement entirely.
6.125%
Interest Rate
$1,215
Monthly P&I
$0
Down Payment
740
Min FICO
0.35%
Annual Fee
USDA Loans in Lemon Grove
USDA loans require a 740 FICO minimum for the best pricing, though some lenders go down to 620 with compensating factors. You need zero down payment — that's the whole point.
The county's median household income of $102,285 qualifies comfortably for USDA loans in Lemon Grove at most price points. Debt-to-income ratio typically maxes at 41-43%. Property must be in a USDA-eligible rural area and your primary residence.
Local decision guide
Use this guide to connect usda loans eligibility, lender expectations, and local market factors before comparing payment options in Lemon Grove.
Lemon Grove sits in San Diego County's USDA-eligible zone, where a $200,000 purchase at 6.125% runs $1,215 monthly for principal and interest. Zero-down USDA financing opens the door for buyers who qualify on income.
USDA loans carry an annual fee of 0.35% on the loan balance, plus a 1% upfront fee rolled into closing costs. That structure replaces the down payment requirement entirely.
USDA loans require a 740 FICO minimum for the best pricing, though some lenders go down to 620 with compensating factors. You need zero down payment — that's the whole point.
USDA loans in California are offered by both retail banks and mortgage brokers, though the broker channel dominates for competitive pricing. Most lenders sell USDA loans to USDA-backed aggregators rather than holding them in portfolio.
Closing timelines run 30-45 days for USDA loans, slightly longer than conventional because the USDA guarantee adds a verification step. Brokers typically have tighter relationships with USDA-approved sellers and can move faster than retail banks.
USDA loans make sense in Lemon Grove when you're below the income cap and the property qualifies as rural. At $200,000 purchase price with zero down, USDA beats conventional (which would require 3% down and PMI).
USDA doesn't pencil above $300,000 in San Diego County because FHA becomes cheaper with its lower insurance costs. Below that, USDA's zero-down advantage is real.
FHA loans also run zero-down in Lemon Grove, but FHA mortgage insurance never cancels if you put down less than 10%. USDA has no mortgage insurance at all — just the annual 0.35% fee.
Conventional loans require 3% down minimum and PMI above 80% LTV. At $200,000 purchase with 3% down, you'd need $6,000 cash plus PMI running 0.5-1% annually. USDA's zero-down structure wins for buyers with limited cash but solid income.
Lemon Grove's USDA eligibility is a direct result of San Diego County's rural designation in the eastern portions of the county. That status opens zero-down financing to buyers who might otherwise need to save for years.
San Diego County's median household income of $102,285 means most local buyers fall well within USDA income limits. That's a real advantage in a county where home prices run high.
No — USDA loans require zero down payment. You pay a 1% upfront fee and 0.35% annual fee instead. That structure replaces the down payment entirely, making USDA ideal if you have closing costs saved but not 20% down.
At 6.125% interest with 0.429 discount points ($858 upfront), principal and interest run $1,215 monthly on a $200,000 loan. Add property taxes, insurance, and the 0.35% annual USDA fee to get your total payment.
USDA loans typically require 740 FICO for best pricing. Some lenders go down to 620 with compensating factors like strong income or reserves. Call for your specific credit profile.
Most of Lemon Grove sits in a USDA-eligible rural area, but not all properties qualify. Your lender must verify the property's exact location against USDA maps before you make an offer. Ask your broker to check eligibility early.
USDA income limits cap at 115% of San Diego County's median household income. For a family of four, that's $117,628. If your household income exceeds that, USDA is not available regardless of credit or assets.