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in Commerce, CA
Commerce sits in Los Angeles County where the median household income is $87,760. FHA and USDA both serve buyers with limited down payments, but they work very differently.
FHA requires a minimum 3.5% down with a 580 FICO. USDA offers zero down for eligible rural properties. The choice hinges on location and savings.
FHA at 5.875% works for buyers with modest savings and fair credit. The 3.5% down requirement opens homeownership to those who can't save 20%.
On a $750,000 loan with 740 FICO, the payment runs $4,437 monthly for principal and interest. Mortgage insurance (MIP) is the trade-off.
USDA loans offer zero down for properties in USDA-eligible rural areas. No down payment means no savings requirement at closing.
The property must sit in a USDA-designated zone, which excludes many urban areas. USDA charges an upfront fee of 1% and an annual fee of 0.35%.
Local decision guide
Use this comparison to weigh FHA Loans and USDA Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Commerce.
Commerce sits in Los Angeles County where the median household income is $87,760. FHA and USDA both serve buyers with limited down payments, but they work very differently.
FHA requires a minimum 3.5% down with a 580 FICO. USDA offers zero down for eligible rural properties. The choice hinges on location and savings.
FHA at 5.875% works for buyers with modest savings and fair credit. The 3.5% down requirement opens homeownership to those who can't save 20%.
FHA works anywhere in Commerce; USDA only in USDA-eligible zones. If your property falls outside a USDA area, FHA is your only choice.
Down payment is the second divider. FHA requires at least 3.5% saved; USDA requires nothing. For a buyer with zero savings and a USDA-eligible property, USDA opens the door entirely.
Pick FHA if you have savings and your property is outside a USDA zone. Your down payment covers the 3.5% requirement. FHA's upfront MIP is a one-time cost.
Choose USDA if your property sits in a USDA-eligible area and you have little or no savings. Zero down means you keep cash for closing costs. The annual 0.35% fee is predictable.
It depends on the specific address. USDA eligibility is property-based, not city-based. Some Commerce neighborhoods qualify; others don't. Check the USDA property eligibility map.
No. FHA requires only 3.5% down and includes mortgage insurance. USDA requires zero down with no mortgage insurance. Conventional loans need 20% down to skip PMI.
FHA at 5.875% is priced for 740 FICO and 96.5% LTV. USDA rates vary by lender and scenario. Compare quotes directly for the best rate.
If you put down less than 10%, MIP stays for the life of the loan. At 10% or more down, MIP cancels after 11 years. USDA has no mortgage insurance.
USDA caps household income at the area-specific threshold for this county, scaled by family size. The limit varies by household size. Contact your lender for your family's cap.