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in Bell Gardens, CA
Bell Gardens buyers often ask which government loan offers the best deal. FHA loans work almost anywhere with just 3.5% down, while USDA loans offer zero down payment but require property location approval.
Most Bell Gardens properties won't qualify for USDA financing since it's an urban Los Angeles area. FHA becomes the default choice for buyers who need low down payment options and flexible credit standards.
FHA loans let you buy with 3.5% down if your credit score hits 580. You'll pay mortgage insurance for the life of the loan on most purchases, which adds to your monthly payment.
These loans work on single-family homes, condos, and multi-units in any Bell Gardens neighborhood. Sellers can contribute up to 6% toward your closing costs, which helps when cash is tight.
USDA loans eliminate the down payment entirely if you qualify. The property must sit in an approved rural or suburban area, and your household income can't exceed local limits.
Bell Gardens sits inside Los Angeles County's urban core, making USDA approval unlikely. The program targets genuinely rural communities, not established LA suburbs with full city services.
The down payment gap is obvious: FHA needs 3.5%, USDA needs nothing. But location kills most Bell Gardens USDA deals before they start since the city doesn't meet rural definitions.
FHA mortgage insurance costs more than USDA's guarantee fee. You pay 1.75% upfront plus 0.55%-0.85% annually on FHA, while USDA charges 1% upfront and 0.35% yearly. But you can't use USDA if the property doesn't qualify.
FHA wins for nearly all Bell Gardens buyers because the properties actually qualify. You're buying in an urban LA neighborhood with no USDA eligibility, so the zero down payment option doesn't matter.
Check USDA maps before getting excited about no money down. If your target property somehow sits in an eligible pocket, USDA saves you thousands on mortgage insurance over time. But plan on FHA as your realistic path forward.
Probably not. Bell Gardens is an urban LA city that doesn't meet USDA rural definitions. Check the USDA eligibility map for your specific address.
USDA charges less: 0.35% annually versus FHA's 0.55%-0.85%. But this only matters if your Bell Gardens property qualifies for USDA financing.
FHA goes lower at 580 minimum. USDA typically wants 640, though some lenders approve 620 with strong compensating factors.
FHA allows 6% seller concessions. USDA permits 6% as well, so both programs help buyers with limited cash beyond the down payment.
FHA closes quicker because more lenders offer it and appraisers know the requirements. USDA adds property eligibility verification that slows the process.