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in Willows, CA
Most Willows buyers qualify for both FHA and USDA financing. The difference isn't approval odds—it's what you pay upfront and monthly.
USDA requires zero down but limits income. FHA needs 3.5% down with no income cap. Your choice depends on cash versus earning power.
FHA loans need 3.5% down with credit scores as low as 580. You pay upfront mortgage insurance (1.75%) plus annual premiums (0.55%-0.85%).
No income limits make FHA work for higher earners. Sellers can contribute up to 6% toward closing costs. Most Willows properties qualify regardless of location.
USDA loans require zero down payment in eligible Glenn County areas. You pay 1% upfront guarantee fee plus 0.35% annual fee—lower than FHA.
Income limits apply: single earners max around $103,500, families around $136,700. Credit minimums start at 640 for automated approvals. Willows city limits and surrounding areas qualify.
Down payment splits these programs. USDA eliminates it entirely. FHA needs 3.5%, which runs $7,000-$10,000 on typical Willows homes.
Monthly costs favor USDA. Annual insurance at 0.35% beats FHA's 0.55%-0.85%. On a $200K loan, that's $58 monthly versus $92-$142. Income caps are USDA's tradeoff.
Choose USDA if you're under income limits and want zero down. Most single-income families in Willows qualify easily. The lower monthly cost adds up over 30 years.
Pick FHA if income exceeds USDA caps or you need maximum seller concessions. It works anywhere in town without location restrictions. Also better for rushed closings—USDA adds 1-2 weeks to processing.
Most of Willows and surrounding Glenn County areas qualify. Some newer subdivisions may fall outside USDA zones—your broker checks eligibility in minutes.
Limits adjust yearly. Currently around $103,500 for 1-4 person households, $136,700 for 5-8 people. Include all household members over 18.
No. Both programs require owner occupancy. You must live in the home as your primary residence for at least one year.
FHA typically closes in 25-30 days. USDA adds 1-2 weeks for rural development approval, averaging 35-45 days total.
Rates run nearly identical. USDA sometimes edges lower by 0.125%-0.25% because of the income verification and zero down structure.