Loading
in Kingsburg, CA
Kingsburg sits in a USDA-eligible zone, which means local buyers can choose between two government-backed programs with different trade-offs. FHA requires 3.5% down but works anywhere, while USDA offers zero down but only in approved rural areas like Kingsburg.
Both programs accept lower credit scores than conventional loans. The right choice depends on whether you have down payment savings and how your income stacks up against USDA limits.
Most Kingsburg buyers I work with qualify for both programs but pick FHA when they're over income caps or want faster closing timelines.
FHA loans require just 3.5% down with a 580 credit score or 10% down if your score is 500-579. You'll pay mortgage insurance for the loan's life on most deals, which adds to your monthly payment.
There's no income cap, so high earners can use FHA if they want the low down payment. Debt-to-income ratios can stretch to 50% with strong compensating factors, which helps Kingsburg buyers with car loans or student debt.
FHA works on condos, single-family homes, and multi-unit properties up to four units. Appraisers flag more repair items than conventional loans, so expect some back-and-forth on older Kingsburg properties.
USDA loans offer 100% financing with zero down payment for buyers in eligible rural areas. Kingsburg sits squarely in USDA territory, so most properties here qualify unless you're looking at city center parcels.
You must meet income limits based on household size and county median income. For Fresno County, a family of four typically caps around $103,000 annual income, though limits adjust yearly.
USDA charges an upfront guarantee fee of 1% and annual fees around 0.35%, both lower than FHA's insurance costs. Processing takes longer than FHA because USDA reviews each file twice—once by the lender, once by the agency.
The down payment split is obvious—FHA needs 3.5%, USDA needs nothing. But USDA's income caps disqualify many Fresno County households, especially dual-income buyers or anyone with side business income that pushes them over limits.
FHA mortgage insurance costs more over time. You'll pay 1.75% upfront plus 0.85% annually on most loans, and it never drops off unless you refinance. USDA charges 1% upfront and 0.35% annually, which saves about $100 monthly on a $350,000 loan.
Closing timelines matter if you're competing with cash offers. FHA locks and closes in 25-30 days on average. USDA adds 10-15 days because the agency must approve your file after the lender finishes underwriting.
Property eligibility flips between the two programs. FHA accepts condos and homes in any California city. USDA restricts to rural-designated areas and won't finance income-generating properties or anything over 2,000 square feet of non-residential space.
Pick USDA if you're under income limits and have minimal down payment savings. The zero-down feature and lower monthly insurance make it the cheapest option for qualifying buyers, even though closing takes longer.
Choose FHA if you're over USDA income caps, need to close fast, or want flexibility on property type. That 3.5% down payment isn't much on Kingsburg's housing stock, and FHA approves files conventional lenders reject.
I also push clients toward FHA when they're buying a fixer. USDA appraisals can kill deals on properties needing work, while FHA's 203(k) renovation loan actually finances repairs into your mortgage.
Most Kingsburg properties qualify because the city sits in USDA-eligible rural territory. Some newer developments near the city center may fall outside the zone, so check USDA's map before making offers.
Limits adjust annually and vary by household size. A four-person household typically caps around $103,000 in annual income for Fresno County, though USDA updates these figures each year.
Yes, if you put down less than 10%. You'll pay mortgage insurance for the loan's life unless you refinance into a conventional or USDA loan later.
FHA typically closes in 25-30 days. USDA adds 10-15 days because the agency must review files after lender underwriting, making it slower in competitive markets.
FHA officially allows 580 scores with 3.5% down. USDA doesn't set a minimum, but most lenders want 640+ for automatic underwriting, though manual underwriting accepts lower scores.
No. USDA restricts to single-family homes in eligible rural areas and won't finance condos, townhomes, or properties with homeowner associations.