Loan Program

USDA Rural Loans

USDA guaranteed loans offer zero down payment financing in designated rural areas, which in Northern California includes far more towns than most buyers expect. Income limits apply by household size and county.

Down payment

Credit minimum

640 (most lenders)

Guarantee fee

1% upfront, 0.35% annual

Income cap

Varies by county and household size

Best For

Buyers in outlying Sonoma, Napa, Yolo, and Sacramento-area towns
Households under the county income cap
Buyers with no down payment

How It Works

Property must sit inside a USDA-eligible census area, which we verify by address before you write an offer
Total household income, not just borrower income, is tested against the county cap
Upfront guarantee fee can be financed into the loan
Owner-occupied primary residences only

Pros

Zero down
Lower annual fee than FHA
Competitive rates

Trade-offs

Household income caps
Geographic restrictions
Primary residences only

Frequently Asked

How do I know if a property is USDA-eligible?

Eligibility is set by census area, not by how rural the town feels. Send me the address and I will confirm eligibility the same day.

Does everyone in the house count toward the income limit?

Yes. USDA tests total household income including adult occupants who are not on the loan, which surprises many applicants.

Real-World Examples

How this program actually plays out.

Outlying Sonoma County purchase

A family buying in a small town most people assume is too close to the city to be USDA-eligible.

Purchase price: $525,000
Down payment: $0
Annual fee: 0.35% (lower than FHA MIP)
Household income: Under county cap

Zero down with a cheaper monthly mortgage insurance equivalent than FHA would have charged on the same purchase.

Examples are illustrative composites of typical files, not offers of credit or guarantees of terms. Your actual options depend on your credit, income, property, and current market pricing.

What Moves Your Rate

Credit score, though USDA is less tiered than conventional
Whether the guarantee fee is financed or paid at close
Discount points

Documents You Will Need

Income documentation for every adult in the household, not only the borrowers
Standard pay stubs, W-2s, and bank statements
Address verification against the USDA eligibility map

Northern California Notes

How usda rural loans work in our market.

Large parts of Yolo, Solano, outer Sacramento, and rural Sonoma and Napa counties are USDA-eligible.
Eligibility is drawn by census area, so two homes a mile apart can differ. We check the exact address before you offer.
Core Bay Area cities are not eligible, so USDA is a North Bay and Central Valley strategy.

San Francisco Marin County East Bay Sonoma County Napa County Sacramento

Is this the right program?

Have Mark run your numbers, no credit pull required.

Talk to Mark

Other Programs

Conventional Loans FHA Loans VA Loans Jumbo Loans DSCR Investor Loans Bank Statement Loans Asset Depletion Loans ITIN Loans Renovation Loans Fix & Flip / Bridge Loans HELOC & Equity Access Reverse Mortgages (HECM)