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in Lemoore, CA
Both FHA and USDA loans let Lemoore buyers stretch their budget with low upfront costs. The difference comes down to location and income—USDA offers zero down but limits who qualifies.
Most of Lemoore sits in USDA-eligible territory, making this comparison critical. We see buyers waste weeks pursuing the wrong program before getting their answer.
FHA loans require just 3.5% down and accept credit scores as low as 580. You'll pay both upfront mortgage insurance (1.75% of loan amount) and annual premiums that last the loan's life.
There's no income ceiling with FHA, so higher earners can still qualify. Loan limits in Kings County run up to $498,257 for single-family homes, covering most Lemoore inventory.
USDA loans require zero down payment but cap household income at $103,500 for most Lemoore families. The property must sit in a USDA-designated rural area—most of Lemoore qualifies, but verify your specific address.
You'll pay a 1% upfront guarantee fee plus 0.35% annual fee. That annual cost drops significantly below FHA's 0.55-0.80% range, making USDA cheaper long-term if you qualify.
Down payment separates these programs first. USDA's zero down beats FHA's 3.5%, saving you around $10,000 on a $300,000 purchase—but only if your income and property location qualify.
Monthly costs tilt toward USDA too. On that same $300,000 loan, FHA mortgage insurance runs $165-$200 monthly while USDA costs just $88. Over 30 years, USDA saves over $27,000 in insurance premiums.
Run the USDA eligibility check first. If your household income stays under $103,500 and the property passes USDA mapping, you'll save thousands by skipping the down payment and reducing monthly insurance.
FHA makes sense when USDA won't work—income too high, property in an excluded zone, or you need faster closing. We also lean FHA for buyers with credit in the 580-620 range, where USDA underwriting gets pickier.
Most of Lemoore qualifies for USDA financing, but newer developments near Naval Air Station may fall outside eligible boundaries. We verify your specific address against USDA maps before you waste time on an application.
FHA typically closes 2-3 days quicker because USDA requires rural eligibility verification. Both programs take 30-40 days total with responsive borrowers.
Yes. FHA permits up to 6% in seller concessions while USDA allows 6% as well. We negotiate these costs into Lemoore offers regularly to preserve your cash.
USDA counts household income, not just borrowers. If a non-borrowing spouse or adult child earns wages in your home, their income may push you over the $103,500 threshold.
Yes, but only if your property remains USDA-eligible and your income still qualifies. We see this make sense when rates drop significantly or FHA insurance costs become burdensome.