Question 1

Do I really need zero down to qualify for a USDA loan in Lompoc?

Accepted Answer

Yes — zero down is the defining feature of USDA loans. You're financing 100% of the purchase price. The tradeoff is the property must be in a USDA-eligible rural area and your household income can't exceed 115% of the county median ($110,475 for...

Question 2

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

Accepted Answer

At 6.125% (as of April 8, 2026), principal and interest run $1,215 monthly on a $200,000 loan. That's before property taxes, insurance, and the 0.35% annual USDA fee.

Question 3

Is there mortgage insurance on a USDA loan?

Accepted Answer

No PMI. Instead, you pay a 0.35% annual USDA fee on the loan balance. On a $200,000 loan, that's $700 per year. It's built into your payment, not a separate bill. Over 30 years, it totals roughly $2,100 — less than FHA's lifetime insurance.

Question 4

What credit score do I need for USDA in Lompoc?

Accepted Answer

640 FICO is the minimum. Most lenders prefer 680+ to get the best rates. At 740, you're in strong shape. Lenders will pull your full credit report and verify two years of tax returns plus recent W-2s.

Question 5

How long does a USDA loan take to close?

Accepted Answer

Expect 45-60 days. USDA loans move slower than conventional because the USDA guarantees the loan after closing. The property appraisal must meet USDA standards, which adds 5-7 days. Brokers can shop multiple lenders to speed things up.

USDA Loans in Lompoc: Zero-Down Financing for Santa Barbara County Homebuyers