Question 1

Does downtown San Luis Obispo qualify for USDA loans?

Accepted Answer

No, the city center is too densely populated. Check USDA eligibility maps—most qualifying properties are in unincorporated county areas or smaller towns.

Question 2

What if my income is slightly over the USDA limit?

Accepted Answer

You won't qualify. USDA enforces hard income caps. Consider FHA or conventional loans with low down payment options instead.

Question 3

Can I use a USDA loan for a fixer-upper?

Accepted Answer

The property must meet USDA's minimum standards. Major repairs disqualify it unless completed before closing. FHA 203k handles rehab projects better.

Question 4

How long does USDA approval take in San Luis Obispo County?

Accepted Answer

Expect 35-45 days from application to clear-to-close. USDA's rural development review adds time compared to conventional loans.

Question 5

Do I need perfect credit for a USDA loan?

Accepted Answer

Most lenders require 640, though some accept 620. Lower scores need compensating factors like strong income history or minimal debt.

USDA Loans in San Luis Obispo: Zero Down Payment for Eligible Rural Properties