Question 1

Can I use a USDA loan anywhere in Calabasas?

Accepted Answer

No, most of Calabasas is ineligible for USDA financing. Only specific low-density areas near city borders might qualify based on USDA's rural designation rules.

Question 2

Which loan has lower monthly payments?

Accepted Answer

USDA typically has lower payments due to zero down payment and cheaper mortgage insurance. FHA payments run higher because of the 3.5% down requirement and more expensive insurance.

Question 3

Do both loans have the same credit score requirements?

Accepted Answer

FHA officially goes down to 580 credit scores. USDA doesn't set a minimum but most lenders want 640, making it slightly harder to qualify for.

Question 4

Can I remove mortgage insurance from either loan?

Accepted Answer

USDA insurance drops off at 80% loan-to-value. FHA insurance is permanent on loans over 90% LTV, which covers most purchases with 3.5% down.

Question 5

Which loan works better for higher-priced Calabasas homes?

Accepted Answer

FHA has loan limits around $644,000 in Los Angeles County. USDA has no price cap, but the geography and income restrictions eliminate most expensive properties anyway.

FHA vs USDA Loans in Calabasas: Which Government Program Fits Your Purchase?