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in Kerman, CA
Kerman sits in USDA-eligible territory, which opens up zero-down financing most buyers in Fresno or Clovis can't access. Your choice between FHA and USDA comes down to whether you can scrape together 3.5% down or would rather keep that cash.
Both programs work well for first-time buyers with modest credit. The difference shows up in upfront costs, monthly payments, and how long you plan to stay in the home.
FHA loans require 3.5% down if your credit hits 580. Below that, you need 10% down. You'll pay 1.75% upfront mortgage insurance plus 0.55% to 0.85% annually for the life of most loans.
These loans work anywhere in Kerman, no matter your income. Sellers can contribute up to 6% toward closing costs. You can finance a fixer-upper through FHA 203(k) rehab loans if you find an older property.
USDA loans let you finance 100% of the purchase price in Kerman. You'll pay 1% upfront guarantee fee and 0.35% annually, which is cheaper than FHA's ongoing insurance. No down payment means you keep cash for repairs or reserves.
Income limits cap eligibility at roughly $103,500 for a family of four in Fresno County. Properties must meet USDA location rules, but most of Kerman qualifies. Processing takes longer than FHA because USDA underwriters review every file twice.
FHA costs more monthly because its mortgage insurance runs higher. USDA's 0.35% annual fee beats FHA's 0.55% to 0.85%, saving you $50 to $125 monthly on a $300,000 loan. That gap widens over time.
USDA takes three to five weeks longer to close because of dual underwriting. If you're competing against conventional offers in Kerman, FHA closes faster and looks stronger to sellers. USDA works best when you have time and need to preserve every dollar for closing.
Choose USDA if your income falls below county limits and you can wait for closing. The zero down payment and lower monthly insurance beat FHA when you're stretching to afford Kerman. You'll save thousands over five years in insurance costs alone.
Pick FHA if you earn too much for USDA, need to close fast, or your credit sits below 620. FHA also makes sense if you're buying a fixer that needs work financed into the loan. The higher insurance stings, but you won't get blocked by income caps or location rules.
Most of Kerman qualifies, but newer developments near city limits sometimes fall outside USDA zones. Check the USDA eligibility map with your address before making offers.
Yes. FHA has no income limits in Kerman or anywhere else. It's the fallback when your earnings disqualify you from USDA financing.
USDA's 1% upfront fee beats FHA's 1.75%, saving about $2,250 on a $300,000 loan. Both let you roll the fee into your loan balance.
USDA lets you refinance into conventional and drop insurance once you hit 20% equity. FHA requires mortgage insurance for life on 30-year loans with less than 10% down.
FHA approves 580+ scores with 3.5% down. USDA typically wants 640+, though some lenders go to 620 with strong income and assets.