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in Ione, CA
Ione sits in Amador County, an area where both FHA and USDA loans see heavy use. FHA works anywhere, while USDA requires rural designation—most of Ione qualifies.
Both programs offer low down payments and flexible credit. The key split: FHA charges 3.5% down plus mortgage insurance, USDA charges zero down but caps income at local limits.
FHA loans require 3.5% down with a 580 credit score. You pay an upfront mortgage insurance premium of 1.75%, plus annual MI that runs 0.55-0.85% depending on loan size and term.
There's no income cap with FHA, making it the go-to for middle and upper-middle earners in Ione. Debt-to-income can stretch to 50% with strong compensating factors like cash reserves.
USDA loans require zero down payment in eligible rural areas. Ione's rural status means most properties qualify, but income can't exceed 115% of area median—roughly $103,000 for a household of four in Amador County.
Credit minimums run around 640 for automated approvals, though some lenders go to 580 with manual underwriting. You pay a 1% upfront guarantee fee and 0.35% annual fee, cheaper than FHA's ongoing insurance.
Down payment splits them cleanly: FHA needs 3.5%, USDA needs nothing. That's $12,250 on a $350,000 purchase versus zero cash at closing beyond standard costs.
Income matters only for USDA. A dual-income household earning $120,000 won't qualify for USDA but faces no barrier with FHA. USDA's annual fee runs 0.35% versus FHA's 0.55-0.85%, saving $70-175 monthly on a $350K loan.
Pick USDA if you're under the income limit and buying in eligible zones. Zero down beats 3.5% down every time, and lower annual fees save $75-150 monthly. Most single-family homes in Ione qualify.
Choose FHA if your income exceeds USDA caps or you're buying a condo or townhouse. FHA also closes faster—USDA adds 7-10 days for rural eligibility verification. If you've got the 3.5% saved, FHA removes the income gatekeeping.
Most of Ione qualifies as USDA-eligible rural area. We verify property eligibility using the USDA map before starting your application.
Possible but tough—most lenders want 640 for automated approval. Below that requires manual underwriting and stronger compensating factors.
USDA runs $70-175 cheaper monthly due to lower annual fees. Over 30 years that's $25,000-63,000 in savings versus FHA.
Around $103,000 for a household of four. Limits adjust based on household size and update annually.
Yes, but only by refinancing to conventional once you hit 20% equity. USDA MI drops off automatically after certain conditions.
FHA typically closes 7-10 days faster. USDA requires rural eligibility verification that adds processing time.