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in Susanville, CA
Both FHA and USDA loans help Susanville buyers qualify with less cash than conventional mortgages require. The difference comes down to location eligibility and how much you can put down.
FHA works anywhere in Susanville with as little as 3.5% down. USDA requires zero down but limits which properties qualify based on rural designation and your household income.
FHA loans back by the Federal Housing Administration work in any Susanville neighborhood. You need 3.5% down with a 580 credit score, or 10% down if your score sits between 500-579.
Mortgage insurance costs more with FHA than conventional loans. You pay an upfront fee of 1.75% plus annual premiums that last the life of most loans, adding roughly $150-250 monthly on a $300k purchase.
USDA loans require zero down payment but only work in areas the USDA designates as rural. Most of Susanville and surrounding Lassen County qualify, though you need to verify the specific address.
Your household income cannot exceed 115% of the area median, which runs around $90,000 for Lassen County families. USDA also charges a 1% upfront fee and 0.35% annual guarantee fee, lower than FHA insurance costs.
Down payment separates these loans first. FHA needs 3.5% minimum while USDA requires nothing down, saving you $10,500 on a $300k home in upfront cash.
Location and income matter more with USDA. FHA works anywhere regardless of your salary, but USDA restricts both where you can buy and how much you earn. Processing also takes longer with USDA since the agency reviews every file directly.
Choose USDA if your property address qualifies and your income falls under county limits. Saving the entire down payment outweighs the extra 2-3 weeks USDA adds to closing timelines.
Pick FHA when you earn too much for USDA, need faster closing, or want to buy in areas USDA excludes. The 3.5% down requirement still beats conventional 5-10% minimums, and nearly every Susanville property works with FHA approval.
Most residential properties in Susanville qualify since Lassen County meets rural designation criteria. Check the specific address on the USDA eligibility map before shopping.
Both programs require properties to meet safety and habitability standards at closing. USDA has stricter condition requirements than FHA for roof, foundation, and systems.
USDA typically costs less monthly due to lower mortgage insurance and no down payment. The difference runs $75-150 per month on a $300k loan compared to FHA.
FHA accepts 580 scores with 3.5% down. USDA prefers 640 minimum but considers lower scores with strong compensating factors like low debt ratios.
USDA adds 45-50 days total vs 30-35 for FHA. The USDA reviews every loan file directly while FHA uses automated underwriting for faster decisions.