Question 1

Do I need to put money down for a USDA loan in Arroyo Grande?

Accepted Answer

No — USDA loans require zero down payment on eligible rural properties. You finance the full purchase price. The only upfront cost is the 1% USDA guarantee fee, which is rolled into your loan amount and paid over 30 years.

Question 2

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

Accepted Answer

At 6.125% APR on a $200,000 USDA loan, principal and interest run $1,215 monthly. That's based on a 30-year fixed rate as of April 8, 2026, with 0.429 discount points ($858 upfront).

Question 3

What income do I need to qualify for USDA in San Luis Obispo County?

Accepted Answer

USDA caps household income at 115% of the area median, which is roughly $107,400 in San Luis Obispo County. The county's actual median household income is $93,398, so most local buyers fall well below the limit.

Question 4

Is there mortgage insurance on a USDA loan?

Accepted Answer

No — USDA loans have no mortgage insurance (PMI). Instead, you pay a 1% upfront guarantee fee and an annual 0.35% fee on the loan balance. On a $200,000 loan, the annual fee is $700. That's cheaper than FHA's lifetime mortgage insurance.

Question 5

How long does it take to close a USDA loan in Arroyo Grande?

Accepted Answer

USDA loans typically close in 45-60 days. The extra time comes from USDA property verification — the lender must confirm the property meets rural eligibility and your income stays within the cap.

USDA 30-year fixed in Arroyo Grande: zero down, rural financing for San Luis Obispo County homebuyers