Question 1

Can I use a USDA loan to buy in Commerce?

Accepted Answer

No. Commerce doesn't meet USDA rural eligibility criteria due to its urban designation and LA County location.

Question 2

What credit score do I need for FHA in Commerce?

Accepted Answer

Most lenders require 580 for 3.5% down. Some go as low as 500 but require 10% down instead.

Question 3

Does FHA cost more than USDA long-term?

Accepted Answer

Yes, FHA mortgage insurance costs more. But USDA isn't available in Commerce, making the comparison irrelevant for local buyers.

Question 4

Which loan has lower income limits?

Accepted Answer

USDA caps income based on area median. FHA has no income limits at all.

Question 5

Can I refinance from FHA to USDA later?

Accepted Answer

Only if you move to a USDA-eligible area. You can't convert an FHA loan on a Commerce property to USDA.

FHA vs USDA Loans in Commerce, CA: Which Government Loan Fits Your Budget?