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in Coalinga, CA
Coalinga sits in rural Fresno County, which makes it eligible for both FHA and USDA financing. Both are government-backed loans with easier qualifying than conventional mortgages.
The biggest difference: FHA requires 3.5% down while USDA offers zero down for income-qualified buyers. Your choice depends on whether you have savings and how your income compares to county limits.
FHA loans let you buy with 3.5% down if your credit score hits 580. Scores between 500-579 require 10% down, though most lenders set their own 580 minimum.
You'll pay both upfront mortgage insurance (1.75% of loan amount) and monthly premiums for the loan's life. FHA doesn't restrict income or location, making it flexible for most Coalinga buyers.
USDA loans require zero down payment for homes in eligible rural areas like Coalinga. Your household income must fall below 115% of area median income to qualify.
USDA charges a 1% upfront guarantee fee and 0.35% annual fee, both lower than FHA insurance costs. Credit score minimums typically start at 640, though manual underwriting works for lower scores.
Down payment separates these programs most clearly. FHA needs 3.5% saved while USDA requires nothing upfront, making it ideal for buyers with steady income but limited savings.
USDA restricts both location and income while FHA doesn't care where you buy or what you earn. USDA's lower insurance costs help offset FHA's flexibility advantage if you qualify for both.
Choose USDA if your household income falls below county limits and you have minimal savings. The zero down payment gets you into a home faster, and lower monthly fees keep payments manageable.
Go with FHA if you earn above USDA income caps or want more property choices. The 3.5% down requirement still beats conventional loans, and you won't face rural location restrictions.
Yes, Coalinga sits in a USDA-eligible rural area. Properties must meet USDA's location requirements, which your broker can verify with the address.
USDA typically costs less monthly due to lower mortgage insurance fees. The 0% down creates a larger loan balance, which can offset some savings.
Both programs require homes to meet safety standards at closing. FHA 203(k) rehab loans work for fixers, but standard USDA doesn't offer a renovation option.
Limits vary by household size and change annually. Your broker checks current caps against your gross household income during pre-approval.
FHA typically closes quicker because USDA requires additional rural eligibility verification. Expect 30-45 days for FHA versus 45-60 for USDA.