Question 1

Is Taft eligible for USDA loans?

Accepted Answer

Much of Taft falls within USDA-eligible rural zones. You should verify the specific property address on the USDA eligibility map before applying.

Question 2

What credit score do I need for each loan?

Accepted Answer

FHA requires 580 for 3.5% down or 500 for 10% down. Most USDA lenders want a 640 credit score minimum.

Question 3

Can I use USDA to buy a fixer-upper in Taft?

Accepted Answer

USDA requires the home to be move-in ready and meet minimum property standards. It won't work for most distressed properties.

Question 4

Which loan has lower mortgage insurance?

Accepted Answer

USDA mortgage insurance is cheaper than FHA in most scenarios. USDA charges 0.35% annually versus FHA's 0.55% annual MIP.

Question 5

Do USDA income limits include all household members?

Accepted Answer

Yes — USDA counts total household income, not just the borrower's. Even non-borrowing adults in the home can affect eligibility.

Question 6

Can I get either loan with no savings at all?

Accepted Answer

USDA allows zero down, but closing costs still apply. FHA requires at least 3.5% down — closing costs are separate. Rates vary by borrower profile and market conditions.

FHA vs USDA Loans in Taft, CA: Which One Saves You More?