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in Orland, CA
Both FHA and USDA loans help buyers with limited cash get into homes in Orland. The choice depends on your down payment savings and whether you meet USDA's income caps.
FHA works anywhere in Glenn County with just 3.5% down. USDA requires zero down but limits who qualifies based on income and property location.
FHA loans require 3.5% down with a 580 credit score. You can buy anywhere in Orland regardless of income, though you'll pay mortgage insurance for the life of the loan.
Sellers can contribute up to 6% toward your closing costs. Debt-to-income ratios up to 50% get approved regularly, making FHA work for buyers with existing obligations.
FHA caps loan amounts at $498,257 in Glenn County. You'll pay an upfront mortgage insurance premium of 1.75% plus annual premiums around 0.55%.
USDA loans require zero down payment if you qualify by income and location. Most of Orland sits in eligible rural zones, but you'll need to verify your specific address.
Income limits for Glenn County cap at $103,500 for households up to four people. Larger families get slightly higher caps, but most working families in Orland fall within range.
USDA charges a 1% upfront guarantee fee and 0.35% annual fee. No down payment means you finance the entire purchase price plus the upfront fee.
Down payment splits these programs. FHA needs 3.5% saved while USDA requires nothing upfront but restricts who qualifies by income and location.
FHA mortgage insurance costs more over time. You'll pay 0.55% annually versus 0.35% with USDA, which adds $60-80 monthly on a $300,000 loan.
Income limits only affect USDA borrowers. FHA approves anyone who can afford the payment, while USDA caps household income around $103,500 in Glenn County.
Choose USDA if you have zero down payment savings and your household income stays under $103,500. You'll save on mortgage insurance and avoid needing cash at closing.
Pick FHA if you exceed USDA income limits or want faster processing. FHA works on any property in Orland and doesn't require USDA's rural designation verification.
Both programs accept similar credit scores and debt ratios. Your decision comes down to whether you have 3.5% saved versus whether you meet USDA's income cap.
Most of Orland sits in USDA-eligible zones. Check your specific address on the USDA eligibility map before applying.
Yes, but only by refinancing to a conventional loan once you hit 20% equity. USDA drops fees after 11 years if you put 10% down initially.
FHA typically closes 5-7 days faster. USDA requires rural designation verification which adds processing time.
Yes, both accept gift money for down payment and closing costs. FHA requires 3.5% total while USDA covers 100% with gift funds.
FHA becomes your government-backed option. You'll need 3.5% down but face no income restrictions in Orland.