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in Fresno, CA
Both FHA and USDA loans help Fresno buyers who can't put 20% down. But they work for completely different borrower profiles.
FHA accepts lower credit scores and works anywhere in Fresno. USDA requires zero down but limits where you can buy and how much you earn.
Most Fresno borrowers choose based on location first. If you're buying in eligible areas north or west of the city, USDA saves thousands on upfront costs.
FHA loans require just 3.5% down with a 580 credit score. You can buy anywhere in Fresno County — Tower District, Woodward Park, Fig Garden, or any neighborhood.
The tradeoff is mortgage insurance you can't remove. You pay 1.75% upfront plus 0.55%-0.85% annually for the loan's life.
FHA works well for buyers with past credit issues or those buying in central Fresno where USDA doesn't apply. There's no income cap, so higher earners qualify.
USDA loans require zero down payment in eligible rural and suburban zones. Parts of northwest Fresno and areas outside city limits often qualify.
Income limits cap eligibility at $103,500 for most households in Fresno County. Properties must be in USDA-designated areas — check the eligibility map before house hunting.
You still pay mortgage insurance but at lower rates than FHA. The 1% upfront fee and 0.35% annual premium save money long-term.
Down payment is the obvious split. USDA needs nothing upfront while FHA requires 3.5%, which runs about $10,000 on a $285,000 purchase.
Location matters more than most buyers realize. USDA doesn't work in central Fresno, Fig Garden, or most established neighborhoods. You're looking at areas like Herndon, Clovis borders, or county pockets.
Income limits disqualify many USDA applicants. A household earning $110,000 can't use USDA but easily qualifies for FHA. Credit standards also run stricter — most USDA lenders want 640 minimum despite the program allowing lower scores.
Choose USDA if you're buying in eligible areas and earn under the income cap. Saving $10,000+ on down payment outweighs location restrictions for budget-focused buyers.
Pick FHA if you're buying in central Fresno, earn over $103,500, or have credit below 640. It's also faster — USDA adds 1-2 weeks to closing for rural development approvals.
Don't assume one is automatically better. Run the numbers with both programs. Lower USDA insurance might offset the higher down payment on FHA within a few years.
No. Central Fresno doesn't qualify. Most eligible properties sit north of Herndon or outside city limits in Fresno County areas.
FHA officially allows 580 scores. USDA lenders typically require 640+ despite lower program minimums.
FHA accepts gift funds for the full 3.5%. USDA doesn't need down payment but allows gifts for closing costs.
Most Fresno households max out at $103,500 annual income. Limits adjust for household size and specific census tract.
No for FHA — it lasts the loan's life. USDA insurance drops off after 11 years if you put 10%+ down, which defeats the zero-down purpose.
FHA typically closes 3-5 days quicker. USDA requires rural development approval that adds processing time.