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in Jackson, CA
Jackson sits in a USDA-eligible zone, which means buyers here can access zero-down financing that most California cities don't qualify for. FHA loans work anywhere, but USDA loans only apply in designated rural areas like Amador County.
Both programs offer low-cost entry points for first-time buyers. The real question is whether you want to put 3.5% down with FHA or nothing at all with USDA—and whether your income fits USDA limits.
FHA loans require just 3.5% down and accept credit scores as low as 580. You'll pay an upfront mortgage insurance premium of 1.75% plus annual premiums of 0.55% for most loan amounts.
There's no income limit with FHA, making it workable for higher earners in Jackson. Loan limits in Amador County allow up to $498,257 on a single-family home, which covers most local inventory.
USDA loans require zero down payment and typically cost less in monthly mortgage insurance than FHA. You'll pay a 1% upfront guarantee fee and 0.35% annual fee—about $65 less per month on a $400K loan compared to FHA.
Income can't exceed 115% of the area median, which translates to around $106,200 for a household in Amador County. The property must be your primary residence and meet USDA's rural designation, which most of Jackson does.
USDA wins on upfront costs since you're not putting anything down. FHA requires 3.5% down, which runs about $17,500 on a $500K home in Jackson—money you could keep for repairs or reserves.
Monthly costs favor USDA too. The 0.35% annual fee beats FHA's 0.55% by roughly $65-80 per month on typical loan amounts. But USDA underwriting takes 45-60 days versus 30-40 for FHA, and not every Jackson property will meet USDA's rural eligibility requirements.
Choose USDA if your household income is under $106K and you're buying in an eligible Jackson area. The zero-down structure and lower monthly insurance make it the cheapest option for qualified buyers.
Go with FHA if you earn above USDA's limit, need faster closing, or are buying a property USDA won't approve. FHA also works better for buyers with credit scores in the 580-620 range since USDA prefers 640+, even though 580 is technically allowed.
Most of Jackson qualifies, but some in-town properties may fall outside USDA boundaries. Check the USDA eligibility map or ask us to verify the address before making an offer.
USDA typically runs $65-80 less per month due to lower mortgage insurance. Rates are comparable between the two programs.
Yes. FHA allows up to 6% seller concessions, USDA allows up to 6% as well. Both let you roll closing costs into the loan if appraisal supports it.
FHA regularly approves 580-620 scores. USDA technically allows 580 but most lenders want 640+ for automated approval.
FHA typically closes in 30-40 days. USDA takes 45-60 days due to extra rural eligibility verification and government processing steps.