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in Susanville, CA
Susanville sits in rural Lassen County — and that location matters more than most buyers realize. Both FHA and USDA loans offer low barriers to entry, but they work very differently.
USDA is zero down. FHA requires 3.5%. That single difference shapes which loan wins for most Susanville buyers.
FHA loans require 3.5% down with a 580 credit score. Drop below 580, and you need 10% down. The trade-off is flexibility — FHA works nearly everywhere in California.
You'll pay mortgage insurance for the life of the loan unless you refinance out. For buyers with limited savings, that's the cost of getting in the door.
USDA loans require zero down. No down payment at all. That's the headline, and it's real — but you must meet income limits and buy in an eligible rural area.
Susanville is the kind of market USDA was built for. If you qualify on income, this loan often beats FHA on monthly cost too.
The biggest gap is down payment. USDA is zero down. FHA costs you 3.5% upfront. On a $250,000 home, that's $8,750 you either need — or don't.
USDA mortgage insurance costs less than FHA's. FHA charges 0.55% annually. USDA charges 0.35%. Over time, that gap adds up on your monthly payment. Rates vary by borrower profile and market conditions.
If you're buying in Susanville and meet USDA income limits, start there. Zero down plus lower monthly insurance is a hard combination to beat.
FHA makes more sense if your income is above USDA limits or the specific property doesn't qualify. It's also the better path if your credit is below 640.
Most of Lassen County falls within USDA-eligible rural zones. Confirm the specific property address on the USDA eligibility map before applying.
FHA requires 580 for 3.5% down. USDA typically requires 640 for most lenders, though some go lower.
USDA sets household income limits by county. If you're over the limit for Lassen County, FHA has no income ceiling.
USDA usually wins — zero down means no large upfront cost, and its mortgage insurance rate is lower than FHA's. Rates vary by borrower profile and market conditions.
Yes. Both FHA and USDA allow sellers to cover closing costs. USDA allows up to 6% in seller concessions.
FHA has a 203k rehab option for fixer-uppers. USDA loans generally require the home to meet minimum condition standards at closing.