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National City sits in San Diego County's southern corridor, where USDA-eligible rural properties offer a rare zero-down entry point. At 5.625%, a $200,000 purchase carries a $1,151 monthly payment (principal and interest).
The county's median household income of $102,285 stretches across a range of property types in this area. USDA loans cap at 115% of area median income, so qualification hinges on your specific household size and earnings.
5.625%
Interest Rate
$1,151
Monthly P&I
640
Min. FICO
$0
Down Payment
115% AMI
Income Cap
45-60 days
Typical Close
USDA Loans in National City
USDA loans require a 640 FICO minimum, though 740+ gets you the best pricing. You need zero down — that's the whole point. The property must sit in a USDA-eligible rural area and be your primary residence.
Income limits are the real gate. San Diego County's median household income is $102,285, and USDA caps at 115% of that figure — roughly $117,628 for a single household. Larger families get higher limits. If you're above that threshold, USDA is closed to you.
Local decision guide
Use this guide to connect usda loans eligibility, lender expectations, and local market factors before comparing payment options in National City.
National City sits in San Diego County's southern corridor, where USDA-eligible rural properties offer a rare zero-down entry point. At 5.625%, a $200,000 purchase carries a $1,151 monthly payment (principal and interest).
The county's median household income of $102,285 stretches across a range of property types in this area. USDA loans cap at 115% of area median income, so qualification hinges on your specific household size and earnings.
USDA loans require a 640 FICO minimum, though 740+ gets you the best pricing. You need zero down — that's the whole point. The property must sit in a USDA-eligible rural area and be your primary residence.
USDA lending in California is tighter than it was five years ago. Most retail banks have stepped back. Mortgage brokers and portfolio lenders carry the bulk of USDA volume now.
Brokers can shop USDA across multiple lenders, which matters because rates and fees vary. The upfront fee is 1% of the loan amount, and an annual fee of 0.35% gets rolled into your payment.
USDA makes sense in National City if you're under the income cap and the property qualifies. The zero-down structure is real — no PMI, no funding fee, just a clean 5.625% rate.
The catch is income limits. If you're a two-income household earning $120,000 combined, you're over the cap. USDA doesn't care about your credit score or reserves — it's income-first. Check your eligibility before you fall in love with a property.
FHA loans also work in National City and carry no income limits. But FHA requires mortgage insurance for life if you put down less than 10%. USDA has no insurance at all — the tradeoff is the income ceiling.
Conventional loans demand 20% down to skip PMI, which is $40,000 on a $200,000 purchase. USDA and FHA both eliminate that hurdle. The choice between them comes down to income: under the cap, USDA wins. Over the cap, FHA is your only zero-down option.
National City's location in South San Diego County puts you near the border and away from the coastal premium. That means lower property values and a real shot at zero-down ownership.
Recent USDA guideline changes have tightened property standards and income verification. Mortgage News Daily reported updates affecting rural lending across the country.
No. USDA loans require zero down payment. You finance 100% of the purchase price with no PMI or funding fee. The only upfront cost is the 1% USDA guarantee fee, which gets rolled into your loan amount.
At 5.625% (as of April 18, 2026), principal and interest run $1,151 monthly on a $200,000 loan. Add the 0.35% annual USDA fee, property taxes, insurance, and HOA if applicable. The 0.435 discount points cost $870 upfront.
USDA caps at 115% of San Diego County's median household income, roughly $117,628 for one person. Larger households get higher limits. You must be under that threshold. Income verification is strict — W-2s, tax returns, and pay stubs all required.
Yes. USDA's minimum is 640 FICO. Scores below 700 may face higher rates or require manual underwriting. At 740+, you get the best pricing. Credit is secondary to income limits — you can qualify with lower credit if income clears.
Expect 45-60 days. USDA's property eligibility check adds time upfront. Brokers can speed this by pre-qualifying the address before you apply. Retail banks often take longer because they lack USDA infrastructure.