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in Taft, CA
Taft is a small oil town in western Kern County. Most of it sits inside USDA-eligible zones — and that changes everything about which loan wins.
Both FHA and USDA are government-backed. Both serve buyers with modest savings. But they work very differently, and picking the wrong one costs you money.
FHA loans require just 3.5% down with a 580 credit score. Drop below 580 and you need 10% down — but you can still get approved.
FHA has no income cap and no geographic restriction. If you're buying in Taft, Bakersfield, or Los Angeles, FHA works the same way.
USDA loans require zero down. That's the headline. For buyers in Taft with limited savings, that alone makes it worth checking first.
USDA does have income limits tied to household size and county. Kern County limits are set by USDA annually. You'll need to verify your household qualifies.
Local decision guide
Use this comparison to weigh FHA Loans and USDA Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Taft.
Taft is a small oil town in western Kern County. Most of it sits inside USDA-eligible zones — and that changes everything about which loan wins.
Both FHA and USDA are government-backed. Both serve buyers with modest savings. But they work very differently, and picking the wrong one costs you money.
FHA loans require just 3.5% down with a 580 credit score. Drop below 580 and you need 10% down — but you can still get approved.
The biggest gap is down payment. USDA is zero down. FHA is 3.5% minimum. On a $200,000 home, that's $7,000 out of pocket with FHA.
Mortgage insurance is cheaper with USDA too. FHA charges 1.75% upfront plus 0.55% annual MIP. USDA charges 1% upfront and 0.35% annually. That difference adds up over 30 years.
If you qualify for USDA in Taft, take a hard look at it first. Zero down and lower MIP beat FHA on cost — assuming your income fits the limits.
FHA makes sense if your income is too high for USDA, you're buying a property that doesn't qualify, or you need more flexibility on credit and debt ratios.
Much of Taft falls within USDA-eligible rural zones. You should verify the specific property address on the USDA eligibility map before applying.
FHA requires 580 for 3.5% down or 500 for 10% down. Most USDA lenders want a 640 credit score minimum.
USDA requires the home to be move-in ready and meet minimum property standards. It won't work for most distressed properties.
USDA mortgage insurance is cheaper than FHA in most scenarios. USDA charges 0.35% annually versus FHA's 0.55% annual MIP.
Yes — USDA counts total household income, not just the borrower's. Even non-borrowing adults in the home can affect eligibility.
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.