Question 1

Can I use a USDA loan to buy a home in Compton?

Accepted Answer

No. Compton doesn't qualify as rural under USDA maps. You'd need to buy in eligible areas outside the city limits.

Question 2

Which loan has lower mortgage insurance, FHA or USDA?

Accepted Answer

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.

Question 3

Do both loans accept the same credit scores?

Accepted Answer

Yes, both accept 580 credit scores. FHA allows 500-579 with 10% down, while USDA requires manual underwriting below 640.

Question 4

Can I buy a condo with FHA or USDA loans?

Accepted Answer

FHA works on approved condos. USDA doesn't finance condos at all, only single-family homes on eligible rural properties.

Question 5

Which loan closes faster in Los Angeles County?

Accepted Answer

FHA typically closes faster. USDA adds time for rural eligibility verification and income certification that FHA doesn't require.

FHA vs USDA Loans in Compton: Which Government Program Fits Your Budget?