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in Avenal, CA
Avenal sits in Kings County where both FHA and USDA loans can work. Most buyers here qualify for one or both programs.
FHA requires 3.5% down while USDA offers zero down for eligible properties. The choice depends on your cash position and where you're buying.
FHA backs loans with just 3.5% down if your credit score hits 580. You can go lower to 500 with 10% down.
Mortgage insurance runs for the loan's life on most FHA loans. You pay an upfront premium of 1.75% plus annual premiums between 0.55% and 1.05%.
FHA works on any property type in Avenal that meets basic condition standards. No location restrictions or income caps.
USDA loans require zero down payment for eligible rural properties. Avenal qualifies as a USDA-eligible area.
Income can't exceed 115% of the area median for your household size. USDA charges a 1% upfront fee and 0.35% annual premium—lower than FHA.
Your property must be in a USDA-designated zone and meet basic standards. Primary residence only, no investment properties.
Down payment splits them first. USDA needs nothing down while FHA asks for 3.5% minimum.
USDA restricts income and location. FHA puts no cap on earnings and works anywhere in the city.
Mortgage insurance costs less with USDA at 0.35% annually versus 0.55% to 1.05% for FHA. That gap adds up over 30 years.
Pick USDA if you have little cash saved and your income falls under the area limit. The property must sit in an eligible zone.
Choose FHA if you earn too much for USDA or the property sits outside eligible boundaries. FHA also closes faster since it skips rural designation reviews.
Run both scenarios. I see buyers qualify for USDA but choose FHA to avoid location restrictions or speed up closing timelines.
Most of Avenal qualifies as USDA-eligible rural area. Some properties near city centers may fall outside boundaries—verify the address first.
USDA typically costs less monthly due to no down payment and lower insurance rates. Your actual payment depends on purchase price and interest rate.
Only USDA caps income at 115% of area median for household size. FHA has no income restrictions for Avenal buyers.
USDA insurance stays for the loan's life unless you refinance. FHA insurance is also permanent on loans with less than 10% down.
FHA typically closes quicker since USDA requires rural designation verification. Expect FHA in 21-30 days, USDA in 30-45 days.