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in Lakeport, CA
Both FHA and USDA loans help buyers with limited savings get into homes in Lakeport. The main difference: FHA requires 3.5% down, USDA offers zero down but limits who qualifies.
Most of Lake County qualifies as USDA-eligible rural territory. If you meet the income caps, you can skip the down payment entirely.
FHA loans let you buy with just 3.5% down if your credit score hits 580. Scores between 500-579 need 10% down but still get approved.
There's no income limit with FHA, which matters in Lakeport where dual-income households often exceed USDA caps. You pay an upfront mortgage insurance premium of 1.75% plus annual premiums.
USDA loans require zero down payment for qualifying properties in Lake County. Your income can't exceed 115% of the area median, and the home must meet USDA's rural designation.
Credit score minimums typically start at 640 for streamlined approval. You pay a 1% upfront guarantee fee and 0.35% annual fee, both lower than FHA insurance costs.
Down payment separates these programs most clearly. FHA needs 3.5%, USDA needs nothing, which saves you around $10,000 on a $285,000 purchase.
Income limits trip up many USDA applicants in Lake County. A household of four can't earn over roughly $103,500 to qualify. FHA has zero income ceiling.
Pick USDA if your household income falls under the limit and you're buying outside city boundaries. The zero down payment beats FHA's 3.5% requirement every time.
Choose FHA if you earn too much for USDA, need more flexible credit standards, or want a property that doesn't meet USDA location rules. FHA works on any Lakeport home regardless of income.
Most of Lake County qualifies, but city centers may not. USDA designates eligible areas based on population density, so check specific addresses with a broker.
Limits adjust by household size and year. For 2024, expect caps around $103,500 for a four-person household at 115% of area median income.
No. Both programs require the property to be your primary residence. You must move in within 60 days of closing.
USDA typically costs less monthly due to lower mortgage insurance and no down payment. However, rates vary by borrower profile and market conditions.
FHA approves 580+ for 3.5% down. USDA prefers 640+ for automated approval but may accept lower scores with manual underwriting.