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in Carson, CA
Carson sits in a gray zone for USDA eligibility—parts qualify, most don't. FHA works anywhere in the city, but USDA offers zero down if you're in the right zone.
Both programs help buyers who don't have big cash reserves. The key differences come down to location rules, down payment amounts, and income caps.
FHA loans require 3.5% down with a 580 credit score. You'll pay an upfront mortgage insurance premium of 1.75%, then monthly MI for the life of the loan on most purchases.
Debt-to-income can run up to 50% with strong credit. FHA works for condos, single-family homes, and even some fixer-uppers in Carson if they meet HUD property standards.
Loan limits in Los Angeles County are $498,257 for a single-family home. FHA doesn't restrict your income—if you can afford the payment, you can use the program.
USDA loans require zero down payment, but you must buy in an eligible rural or suburban zone. Most of Carson doesn't qualify—check the USDA map before house hunting.
Income limits apply based on household size. For Los Angeles County, a family of four can't exceed $110,650 in annual income to qualify.
USDA charges a 1% upfront guarantee fee and 0.35% annual fee. Credit scores can go as low as 580, sometimes 620 depending on the lender and your overall profile.
Properties must be owner-occupied, and you can't have another home that's adequate for your needs. USDA reviews ability to repay carefully—this isn't a fast approval.
FHA works citywide. USDA only works in specific zones, and most of Carson falls outside those boundaries. Check eligibility first—don't tour homes you can't finance.
USDA requires no down payment. FHA needs 3.5% minimum. On a $450,000 home, that's $15,750 you either need or don't.
USDA caps your income. FHA doesn't care how much you earn as long as you qualify for the payment. If your household makes over $110,650, USDA is off the table.
Choose USDA if you're buying in an eligible zone and your income stays under the cap. Zero down beats 3.5% down every time if you qualify.
Go with FHA if the home you want sits outside USDA zones or your income exceeds the limit. FHA also closes faster—USDA underwriting takes longer.
If you're borderline on credit, try FHA first. More lenders run FHA programs, and the approval process is more predictable than USDA.
No. Most of Carson doesn't qualify as a USDA-eligible zone. Check the USDA property eligibility map before shopping for homes.
USDA typically costs less monthly because you're not financing a down payment. Rates vary by borrower profile and market conditions.
Yes. Both FHA and USDA accept gift funds from family members for down payment and closing costs with proper documentation.
Only if your home sits in a USDA-eligible zone and you meet income limits. Most Carson homes won't qualify for USDA refinancing.
FHA approves faster with more lenders offering the program. USDA takes longer and has stricter income verification requirements.