Question 1

Does any part of Cerritos qualify for USDA loans?

Accepted Answer

Unlikely. Cerritos is fully developed and urbanized within Los Angeles County. USDA targets rural areas, which excludes most LA County cities including Cerritos.

Question 2

What credit score do I need for each loan?

Accepted Answer

FHA accepts 580 minimum for 3.5% down. USDA typically requires 640 for automated underwriting, though manual underwriting may accept lower scores.

Question 3

Which loan has lower mortgage insurance?

Accepted Answer

USDA charges 0.35% annually versus FHA's 0.55% to 0.80%. USDA insurance costs less if you qualify for the program.

Question 4

Can I remove mortgage insurance on either loan?

Accepted Answer

USDA insurance drops off after 11 years if you put 10%+ down. FHA insurance remains for the loan's life on most 3.5% down purchases.

Question 5

Do both loans have the same purchase limits?

Accepted Answer

FHA caps at $644,000 in LA County. USDA has no set limit but restricts purchases to modest homes appropriate for the area.

FHA vs USDA Loans in Cerritos: Which Government Loan Fits Your Purchase?