Loading
in Compton, CA
Most Compton buyers looking at government loans compare FHA and USDA programs. FHA works anywhere in the city with 3.5% down, while USDA requires zero down but has strict location and income limits.
Both loans help buyers who don't have huge cash reserves or perfect credit. The key difference: USDA won't work for most Compton properties because the city doesn't qualify as rural under their maps.
FHA loans require 3.5% down with a 580 credit score, or 10% down if your score sits between 500-579. You'll pay both upfront mortgage insurance (1.75% of the loan) and monthly premiums for the life of the loan.
These loans work on any property type in Compton that meets FHA appraisal standards. Debt-to-income ratios can stretch to 50% with compensating factors, which helps buyers with modest incomes qualify for higher loan amounts.
USDA loans offer zero down payment financing for buyers meeting income limits in eligible rural areas. Compton itself doesn't qualify as rural, but some surrounding Los Angeles County areas do.
Income limits vary by household size and county. You'll pay a 1% upfront guarantee fee plus 0.35% annual fee, both lower than FHA. Credit scores as low as 580 work with manual underwriting.
Location kills most USDA deals in Compton. The city sits in an ineligible zone, so you'd need to buy in qualifying areas outside city limits while still commuting to work or family here.
Down payment separates these programs most. USDA's zero down beats FHA's 3.5%, but income caps disqualify many Compton households. FHA has no income limits and works on every property type from condos to single-family homes.
Choose FHA if you're buying in Compton proper or don't want to deal with income verification. The 3.5% down payment remains manageable, and you'll close faster without USDA's rural eligibility checks.
USDA only makes sense if you're willing to buy outside Compton in eligible zones and your household income falls below county limits. Zero down saves cash, but location restrictions eliminate most Compton-area properties from consideration.
No. Compton doesn't qualify as rural under USDA maps. You'd need to buy in eligible areas outside the city limits.
USDA costs less. The 0.35% annual fee beats FHA's 0.55%-0.80% monthly premiums, but location and income limits restrict who qualifies.
Yes, both accept 580 credit scores. FHA allows 500-579 with 10% down, while USDA requires manual underwriting below 640.
FHA works on approved condos. USDA doesn't finance condos at all, only single-family homes on eligible rural properties.
FHA typically closes faster. USDA adds time for rural eligibility verification and income certification that FHA doesn't require.