Question 1

Does Holtville qualify for USDA loans?

Accepted Answer

Much of Imperial County meets USDA's rural eligibility criteria. Verify the specific property address on the USDA eligibility map before assuming it qualifies.

Question 2

What credit score do I need for each program?

Accepted Answer

FHA allows scores as low as 500 with 10% down, or 580 with 3.5% down. USDA typically requires a 640 score for automated approval.

Question 3

Can I use USDA if I earn too much?

Accepted Answer

USDA sets household income limits based on county and family size. If you exceed those limits, FHA is your next best low-down-payment option.

Question 4

Which loan has lower mortgage insurance?

Accepted Answer

USDA's monthly guarantee fee is generally lower than FHA's annual mortgage insurance premium. Over 30 years, that difference adds up.

Question 5

Can I use either loan for a fixer-upper?

Accepted Answer

FHA has a 203k rehab option for properties needing repairs. USDA requires the home to meet minimum property condition standards at closing.

Question 6

Do both programs allow seller concessions?

Accepted Answer

Yes. Both FHA and USDA allow sellers to contribute toward closing costs. This can reduce what you need to bring to the table.

FHA vs USDA Loans in Holtville, CA