Question 1

Does downtown Walnut Creek qualify for USDA loans?

Accepted Answer

Most downtown areas don't qualify. USDA targets less dense zones, so you'll likely need FHA if you're buying near the city center.

Question 2

What are the income limits for USDA loans in Contra Costa County?

Accepted Answer

Limits vary by household size and change annually. Check current USDA income caps for Contra Costa before assuming you qualify.

Question 3

Can I remove mortgage insurance from an FHA loan?

Accepted Answer

Not if you put down less than 10%. You're stuck with MI for the loan's life unless you refinance to conventional later.

Question 4

Which loan has lower closing costs in Walnut Creek?

Accepted Answer

USDA saves you the down payment but both have similar fees otherwise. FHA's upfront MI (1.75%) adds cost at closing.

Question 5

Do both programs allow gift funds for down payment?

Accepted Answer

Yes. FHA accepts gifts for the full 3.5% down. USDA allows gifts even though you're putting zero down, useful for closing costs.

FHA vs USDA Loans in Walnut Creek: Which Government Loan Fits Your Budget?