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in Fowler, CA
Fowler sits in rural Fresno County, which means buyers here can choose between two strong government-backed options. FHA and USDA loans both beat conventional financing on down payment and credit flexibility, but they work completely differently.
FHA works anywhere in Fowler with just 3.5% down. USDA requires zero down but only approves properties in eligible rural zones and caps your household income.
FHA loans are insured by the Federal Housing Administration and available on any property type in Fowler. You need 3.5% down with a 580 credit score, or 10% down if your score is between 500-579.
These loans carry two mortgage insurance costs: an upfront premium of 1.75% and annual premiums between 0.45%-1.05% depending on your down payment and loan term. The insurance stays for the life of most loans unless you put down 10% or more.
USDA loans require zero down payment but only work in designated rural areas, which covers most of Fowler outside the densest zones. Your household income cannot exceed 115% of the area median, and the property must be your primary residence.
USDA charges a 1% upfront guarantee fee and 0.35% annual fee, both lower than FHA. Processing takes longer than FHA because USDA must verify income eligibility and rural status before approval.
Down payment is the biggest split: USDA needs nothing, FHA needs 3.5% minimum. On a $300,000 Fowler home, that's $0 versus $10,500 out of pocket before closing costs.
USDA restricts where you can buy and how much you earn. FHA has no income cap and works on any property in Fowler. USDA's lower insurance fees offset FHA's flexibility for buyers who qualify in eligible areas.
Choose USDA if you're buying in an eligible Fowler zone and your household income is under the county limit. The zero down and cheaper insurance save you money upfront and monthly, but expect 45-60 day processing instead of FHA's typical 30.
Go FHA if you need faster closing, you're over the USDA income threshold, or the property sits outside eligible rural boundaries. The 3.5% down is still lower than conventional, and you skip the income verification hassle.
Most of Fowler qualifies, but some areas near the city center are ineligible. Check the USDA property eligibility map with the exact address before writing an offer.
Limits vary by household size and change annually. A family of four typically maxes out around $103,500 in gross annual income for Fresno County rural zones.
Yes, you can choose either program if you meet both sets of requirements. Compare the savings from zero down USDA against faster closing with FHA.
USDA charges 0.35% annually versus FHA's 0.45%-1.05%. USDA's 1% upfront fee is also lower than FHA's 1.75%, saving you money over time.
FHA allows up to 6% seller contributions toward closing costs. USDA allows seller-paid costs but caps total concessions differently based on appraisal value.