Loading
in Hanford, CA
Hanford buyers have two strong low-down-payment options: FHA and USDA. Both are government-backed. Both have flexible credit requirements.
The right pick depends on where the property sits and what your income looks like. One requires 3.5% down. The other requires zero.
FHA loans are insured by the Federal Housing Administration. Lenders require a 580 credit score for the 3.5% down option.
FHA works on any eligible property in Kings County. No geographic restrictions. That flexibility matters in a city like Hanford.
USDA loans require zero down payment. Parts of Kings County qualify as USDA-eligible — check the USDA eligibility map before assuming.
You must meet household income limits to qualify. USDA is built for moderate-income buyers, not high earners.
USDA beats FHA on upfront cost — zero down versus 3.5%. But USDA only works if the property is in an eligible zone.
FHA mortgage insurance runs higher long-term. USDA's annual fee is typically lower. That gap adds up over a 30-year loan.
If the home is in a USDA-eligible area and your income qualifies, USDA wins on cost. Zero down and lower mortgage insurance is hard to beat.
If the property is in central Hanford or you earn above the USDA income limit, FHA is your path. It's less restrictive and still very affordable.
Parts of Kings County are USDA-eligible. The specific property address determines eligibility. We check the USDA map on every application.
FHA requires 580 for 3.5% down. Most USDA lenders want 640 or higher, though guidelines vary by lender.
USDA's annual fee is typically lower than FHA's monthly MIP. Over 30 years, that difference is real money.
Yes. FHA allows the full 3.5% down to come from a gift. The donor must provide a signed gift letter.
USDA doesn't publish hard loan limits like FHA. Your purchase price is constrained by income limits and debt ratios instead.
FHA and USDA have similar timelines. USDA can add days if your file needs USDA Rural Development review and approval.