Question 1

Does the city of Imperial qualify for USDA loans?

Accepted Answer

Parts of Imperial may be USDA-eligible. Check the USDA eligibility map with your exact address — eligibility can vary by street.

Question 2

What credit score do I need for each loan?

Accepted Answer

FHA requires 580 for 3.5% down. USDA typically requires 640, though some lenders accept lower with manual underwriting.

Question 3

Are there income limits for FHA loans?

Accepted Answer

No. FHA has no income cap. USDA does cap income by household size and county — check the USDA limit for Imperial County.

Question 4

Can I use either loan to buy a fixer-upper?

Accepted Answer

FHA has a rehab version called the 203k loan. USDA does not allow significant renovation financing in its standard program.

Question 5

Which loan has lower monthly mortgage insurance?

Accepted Answer

USDA's annual fee is often lower than FHA's monthly MIP. Run a side-by-side comparison with your broker using real loan amounts.

Question 6

Can I own other property and still use these loans?

Accepted Answer

Both require the home to be your primary residence. Owning other property may affect USDA eligibility more strictly than FHA.

FHA vs USDA Loans in Imperial, CA