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in Bell, CA
Both FHA and USDA loans offer government backing with easier approval standards than conventional mortgages. The catch: Bell falls in a gray zone for USDA eligibility, so most buyers here will use FHA by default.
FHA requires 3.5% down and accepts credit scores as low as 580. USDA offers zero down but has strict income caps and property location rules that limit availability in Los Angeles County.
FHA loans work in any neighborhood in Bell with no income caps. You need 580 minimum credit for 3.5% down, or 500-579 with 10% down.
Mortgage insurance runs for the life of the loan unless you put down 10% or more. Rates typically run 0.25% lower than conventional loans, but MIP adds to your monthly payment.
USDA loans require zero down payment but limit who qualifies. Your household income must stay under county limits, and the property must sit in a USDA-approved rural or suburban zone.
Most of Bell does not qualify as a USDA-eligible area. Even if your property qualifies, income caps in Los Angeles County are low relative to home prices here.
Down payment is the biggest split: FHA needs 3.5%, USDA needs nothing. But USDA's eligibility restrictions make it unavailable for most Bell buyers.
FHA has no income caps and works on any property. USDA limits both income and location, which disqualifies most of Los Angeles County including nearly all of Bell.
Check USDA's eligibility map first. If your target property qualifies and your income falls under county limits, USDA beats FHA on down payment alone.
Most Bell buyers will use FHA because USDA zones are rare here. FHA gives you more property options and no income restrictions, which matters in a county where housing costs run high.
Most of Bell does not qualify as a USDA-eligible area. Check the USDA property eligibility map before pursuing this option.
USDA typically has lower mortgage insurance costs. But FHA is more accessible since USDA availability is limited here.
Yes. FHA accepts 580+ for 3.5% down. USDA typically requires 640+ but some lenders go lower.
FHA mortgage insurance is permanent under 10% down. USDA insurance drops off after equity and payment history benchmarks.
FHA usually closes faster since it has fewer eligibility verification steps. USDA requires income and location certification that adds time.