Question 1

Can I use USDA to buy in Calexico city limits?

Accepted Answer

Parts of Calexico may qualify, but not all. Check the USDA eligibility map before assuming the property works.

Question 2

Which loan has lower monthly payments?

Accepted Answer

USDA typically has lower mortgage insurance costs. FHA's monthly MI runs higher, especially with smaller down payments.

Question 3

Do both loans require mortgage insurance?

Accepted Answer

Yes. FHA charges upfront and monthly MIP. USDA charges a guarantee fee and annual fee — generally lower than FHA.

Question 4

What credit score do I need for USDA?

Accepted Answer

Most USDA lenders want 640 or higher for automated approval. FHA goes down to 580 for the 3.5% down option.

Question 5

Are there loan limits for USDA or FHA in Imperial County?

Accepted Answer

FHA loan limits apply by county. USDA doesn't set a hard loan limit but caps eligibility by income instead.

FHA vs USDA Loans in Calexico, CA