Loading
in Hanford, CA
Both FHA and USDA loans work well in Hanford, but they serve different buyers. FHA allows 3.5% down anywhere in town, while USDA requires zero down but limits where you can buy.
Kings County has USDA-eligible zones and traditional neighborhoods. Your choice depends on income, location, and how much cash you have saved.
FHA loans require just 3.5% down with a 580 credit score. You can buy any property type in any Hanford neighborhood — no location restrictions apply.
Mortgage insurance costs stay consistent throughout the loan. Most borrowers pay 0.85% annually plus an upfront premium of 1.75%. Debt ratios stretch to 50% with strong compensating factors.
USDA loans require zero down payment but limit you to eligible rural zones. Parts of Kings County qualify, but you need to verify your target property falls within USDA boundaries.
Income caps apply based on household size — you cannot exceed 115% of area median income. No upfront mortgage insurance exists, and the annual fee runs just 0.35%, much lower than FHA.
Down payment separates these loans most clearly. USDA beats FHA on upfront cash, but geography restrictions eliminate many Hanford properties from eligibility.
Mortgage insurance costs favor USDA heavily — 0.35% versus 0.85% annually saves you real money monthly. FHA also charges 1.75% upfront. Income caps only affect USDA borrowers, while FHA has no income ceiling.
Choose USDA if your target property sits in an eligible zone and your income stays under the cap. You save thousands in upfront costs and cut monthly payments with lower mortgage insurance.
Pick FHA when you want location flexibility or earn too much for USDA. The 3.5% down payment still beats conventional loans, and you can buy anywhere without checking eligibility maps.
Some Hanford areas qualify for USDA, but many urban zones do not. Check the USDA eligibility map with your exact address before assuming approval.
USDA saves about $140 monthly on a $350K loan due to lower mortgage insurance. Rates vary by borrower profile and market conditions.
Yes. FHA allows up to 6% seller concessions, while USDA permits 6% as well. Both help cover closing costs when negotiating offers.
Income limits depend on household size and change annually. A family of four typically caps around $103,500 in Kings County, but verify current limits.
Yes, if your home sits in a USDA-eligible zone and you meet income requirements. Refinancing eliminates higher FHA mortgage insurance when USDA qualifies.