USDA Loans in California:

0% Down Payment for Rural & Suburban Homebuyers

Did you know you might be able to buy a home in California with absolutely zero down payment—and it's not just for veterans? USDA loans are one of the best-kept secrets in home financing, offering 100% financing for eligible properties in suburban and rural areas.

If you're looking in areas outside of Fresno's urban core, you may qualify for this incredible program!

What is a USDA Loan?

An FHA loan is a mortgage insured by the Federal Housing Administration. These loans are designed to help Americans—especially first-time homebuyers—achieve homeownership with:

  • Lower down payments (as low as 3.5%)

  • More Flexible credit requirements (scores as low as 580)

  • Competitive interest rates

  • Gift funds allowed for down payment and closing costs

Why Choose a USDA Loan?

Zero Down Payment Buy a home with absolutely no down payment. Keep your savings for moving costs, furniture, and emergencies.

Low Interest Rates USDA loans typically offer rates comparable to or better than conventional loans.

Low Mortgage Insurance USDA mortgage insurance is significantly cheaper than FHA insurance—about 0.35% annually vs. 0.55-0.85% for FHA.

Flexible Credit Requirements Credit scores as low as 580-640 are typically accepted (though 640+ gets you the best terms).

Seller Can Pay Closing Costs Sellers can pay up to 6% of the home price toward your closing costs.

Financing Up to 100% + Closing Costs In some cases, you can finance closing costs into the loan (subject to appraisal).

Who Qualifies for a USDA Loan?

  • USDA loans have two main eligibility requirements:

    1. Income Limits

    Your household income cannot exceed 115% of the area median income.

    For Fresno County (2025):

    • 1-4 person household: $103,500 maximum

    • 5-8 person household: $136,650 maximum

    Note: These limits are updated annually and vary by county. Some areas have higher limits.

    2. Property Location

    The home must be in a USDA-eligible area. Many people are surprised to learn their desired location qualifies!

    Areas near Fresno that typically qualify:

    • Clovis (parts)

    • Sanger

    • Fowler

    • Selma

    • Reedley

    • Kingsburg

    • Orange Cove

    • Parlier

    • Caruthers

    • Most rural areas in Fresno, Madera, Tulare, and Kings Counties

    Check if your desired area qualifies: USDA Eligibility Map

USDA Loan Requirements

Credit Score:

  • 640+ for automated underwriting approval

  • 580-639 may qualify with manual underwriting (more documentation)

Income Requirements:

  • Must have stable, dependable income

  • Income cannot exceed area limits (see above)

  • All household income must be counted (including non-borrowing household members)

Debt-to-Income Ratio:

  • Front-end ratio (housing costs): Up to 29%

  • Back-end ratio (all debt): Up to 41%

  • Higher ratios may be approved with compensating factors

Property Requirements:

  • Must be in USDA-eligible area

  • Must be your primary residence (no investment properties)

  • Property must be modest in size and value for the area

  • Cannot have in-ground swimming pool in most cases

  • Must meet USDA property standards

U.S. Citizenship: You must be a U.S. citizen, U.S. non-citizen national, or qualified alien.

USDA Loan Limits

Unlike FHA or conventional loans, USDA doesn't have a set loan limit. Instead, your loan amount is limited by:

  1. Your income and debt ratios

  2. The appraised value of the home

  3. What you can reasonably afford

Typical USDA loan range in Fresno area: $150,000 - $400,000

USDA Loan Fees

Upfront Guarantee Fee: 1.0% of the loan amount

  • Can be rolled into your loan

  • Example: $300,000 loan = $3,000 fee

  • New total loan amount: $303,000

Annual Fee: 0.35% of the loan balance

  • Paid monthly as part of your mortgage payment

  • Example: $300,000 loan = $1,050/year = $87.50/month

Total Cost Comparison: Even with these fees, USDA loans are typically cheaper than FHA loans and much cheaper than conventional loans with PMI.

How to Know if USDA is Right for You?

USDA might be perfect if:

✓ You're comfortable living outside urban centers

✓ You want 0% down payment

✓ Your income is at or below area limits

✓ You have decent credit (640+)

✓ You're buying a modest, single-family home

USDA might not work if: ✗ You want to live in downtown Fresno or other urban areas

✗ Your income exceeds area limits

✗ You're buying an investment property

✗ The property has a pool or is considered luxury

✗ You need to close very quickly (USDA can take slightly longer)

The USDA Loan Process

Step 1: Verify Eligibility

  • Check property location eligibility

  • Confirm income is within limits

  • Review credit requirements

Step 2: Get Pre-Approved (24-48 hours)

  • I'll verify your income, assets, and credit

  • Issue pre-approval letter

Step 3: Find Your Home

  • Work with real estate agent

  • Make sure property is in USDA-eligible area

  • Make competitive offer

Step 4: USDA Processing (30-45 days typical)

  • Property appraisal

  • USDA underwriting review

  • Final USDA approval

Step 5: Close on Your Home

  • Sign documents

  • Get your keys!

Note: USDA loans can take slightly longer than FHA or conventional loans due to the additional USDA approval layer. Plan for 30-45 days from contract to closing.

Why Choose Marcus for Your USDA Loan?

  • USDA Loan Expertise: I've helped many families in Fresno County and surrounding areas use USDA loans to buy homes with 0% down. I know the program inside and out.

  • Area Knowledge: I know which areas around Fresno qualify for USDA loans and can guide you accordingly.

  • Income Qualification Help: I'll calculate your household income and help you understand if you're within limits.

  • Smooth Process: USDA loans have an extra approval step, but I'll manage the process so it's as smooth as possible.

  • Fast Pre-Approval: Even though final approval takes longer, I can pre-approve you in 24-48 hours so you can start shopping.

  • Clear Communication: You'll always know where your loan stands. I'll update you every step of the way.

Ready to Explore USDA Financing?

Let's find out if you qualify for this amazing 0% down program!