Loading
in Burbank, CA
Burbank sits squarely in urban Los Angeles County, which means USDA loans aren't available here. The city doesn't meet USDA's rural or suburban eligibility requirements.
FHA loans remain the go-to government option for Burbank buyers with limited savings or credit challenges. Understanding why USDA doesn't work here saves you time chasing dead ends.
FHA loans let Burbank buyers put down just 3.5% with credit scores as low as 580. You'll pay mortgage insurance both upfront and monthly, but approval standards beat conventional loans.
We see FHA work well for first-time buyers in Burbank who have solid income but limited savings. Debt-to-income ratios can stretch to 50% with compensating factors.
USDA loans offer zero down payment for eligible rural and suburban properties. Income limits apply, and the property must fall within USDA-designated areas.
Burbank doesn't qualify under USDA's geographic restrictions. The program targets less densely populated areas, and urban LA County cities don't meet those criteria.
The critical difference is location eligibility. USDA restricts loans to designated rural and suburban zones, which excludes all of Burbank.
FHA works anywhere in the country with no income caps. Down payment is 3.5% versus USDA's zero, but that tradeoff doesn't matter when USDA isn't an option.
For Burbank buyers, FHA is your government-backed option. USDA doesn't serve this market, so comparing them here is academic.
If you're set on zero down payment, look at VA loans if you're a veteran or consider conventional 97% financing. Those actually work in urban LA County.
No. USDA doesn't designate any areas in Burbank as eligible. The entire city falls outside USDA's rural and suburban zones.
3.5% down with a 580 credit score. If your score sits between 500-579, you'll need 10% down.
No. FHA doesn't cap borrower income. You just need enough income to qualify for the loan amount you're requesting.
USDA defines eligibility by population density and proximity to metro areas. Burbank's urban density disqualifies it despite being outside downtown LA.
Most lenders approve 580 and above. Some overlays push the minimum to 600-620, but we can find lenders who work with 580.