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in Colusa, CA
Colusa sits in one of California's prime agricultural regions, which means most properties qualify for USDA financing. FHA loans work here too, but they require a down payment while USDA offers zero down for eligible buyers.
Both programs serve borrowers who don't have perfect credit or big savings. The real question is whether you can put 3.5% down and want flexibility, or prefer to finance the entire purchase with income limits.
FHA loans need just 3.5% down with a 580 credit score, or 10% down if your score sits between 500-579. You pay upfront mortgage insurance of 1.75% plus annual premiums that typically run 0.55%-0.85% of your loan amount.
There's no income limit, so high earners can use FHA if they want low down payment options. Loan limits in Colusa County hit $498,257 for single-family homes in 2024, which covers most local inventory.
USDA loans require zero down payment for qualified rural properties, which includes nearly all of Colusa. You need a 640 credit score at most lenders, though the program minimum is technically 620 with manual underwriting.
The catch is income: your household can't exceed 115% of area median income. You also pay a 1% upfront guarantee fee and 0.35% annual fee, which runs cheaper than FHA insurance over time.
Down payment splits these two apart. USDA asks for nothing upfront if you qualify, while FHA needs at least 3.5%. That difference matters when you're buying a $350,000 farmhouse—you either need $12,250 saved or you don't.
Income limits create the second major divide. USDA caps your household income based on family size and county medians. FHA doesn't care what you earn, which helps borrowers with higher incomes who still want low down payment financing.
Choose USDA if your property qualifies as rural, your household income falls within limits, and you want to preserve cash by putting nothing down. Most Colusa homes meet the location requirement, so eligibility comes down to income and credit score.
Pick FHA if you earn too much for USDA, need more property type flexibility, or can't hit the 640 credit threshold most USDA lenders want. You'll pay more in mortgage insurance long-term, but you gain access regardless of income level.
Yes, nearly all properties in Colusa meet USDA rural eligibility requirements. Check the USDA property map or ask your broker to verify a specific address.
Income limits vary by household size and update annually. A family of four typically maxes out around $103,500, but exact figures change based on area median income adjustments.
Yes, FHA has no income restrictions. It works for any borrower who meets credit and down payment requirements, regardless of earnings.
USDA charges 0.35% annually versus FHA's 0.55%-0.85%. Over a 30-year loan, USDA insurance costs significantly less if you qualify.
Both allow acreage, but USDA caps land size based on local norms. FHA is more flexible with larger parcels as long as the property appraises.