Question 1

Do any Lafayette properties qualify for USDA loans?

Accepted Answer

Some eastern edges near open space may qualify, but most developed Lafayette neighborhoods don't meet USDA rural definitions. We check the address through USDA's eligibility map during pre-approval.

Question 2

Can I use FHA with less than 3.5% down?

Accepted Answer

No. FHA requires minimum 3.5% down with 580+ credit. Lower credit scores need 10% down, which eliminates FHA's main advantage for most buyers.

Question 3

Which program has lower mortgage insurance?

Accepted Answer

USDA charges lower annual premiums than FHA in most cases. FHA's upfront premium is higher, but USDA also charges a smaller upfront guarantee fee.

Question 4

What income counts toward USDA limits?

Accepted Answer

All household members over 18 who aren't full-time students count, even if they're not on the loan. That includes adult children living at home.

Question 5

Can I refinance out of mortgage insurance later?

Accepted Answer

USDA allows refinancing to conventional once you hit 20% equity. FHA insurance stays for the loan's life unless you put 10%+ down originally.

FHA vs USDA Loans in Lafayette: Which Government Program Fits Your Purchase?