Loading
Loading
Compton sits inside Los Angeles County's urban core. USDA loans require properties in eligible rural or suburban areas.
Most of Compton falls outside USDA's designated zones. Borrowers here typically need FHA or conventional financing instead.
Check USDA's eligibility map before house hunting. A property one block outside the zone won't qualify no matter your income.
USDA Loans in Compton
USDA loans require household income below area limits. Los Angeles County caps vary by household size and location.
You need 640+ credit for most lenders. Some accept 620 with compensating factors like cash reserves.
Property must be your primary residence. Investment properties and vacation homes don't qualify under USDA rules.
Debt-to-income ratios max out at 41% for most borrowers. Higher ratios need strong credit and stable employment history.
Local decision guide
Use this guide to connect usda loans eligibility, lender expectations, and local market factors before comparing payment options in Compton.
Compton sits inside Los Angeles County's urban core. USDA loans require properties in eligible rural or suburban areas.
Most of Compton falls outside USDA's designated zones. Borrowers here typically need FHA or conventional financing instead.
Check USDA's eligibility map before house hunting. A property one block outside the zone won't qualify no matter your income.
Not all lenders handle USDA loans. Processing takes longer than conventional because of USDA's underwriting overlay.
Expect 45-60 day closings minimum. USDA adds government review steps that FHA doesn't require.
Lender credit score overlays matter more than USDA's baseline. One bank accepts 620 while another wants 680.
We shop lenders who actually close USDA deals in LA County. Many advertise it but lack experience with the program.
Most Compton buyers we see don't qualify by address. USDA works better in Antelope Valley or Riverside County.
If you're set on Compton, FHA needs just 3.5% down with 580 credit. That's more realistic than hunting USDA-eligible pockets.
USDA's income limits trip up dual-income households. A couple earning $95,000 combined might exceed county caps.
The zero down feature sounds great until you factor in the 1% upfront guarantee fee. FHA's upfront cost is lower at 1.75%.
FHA loans work anywhere in Compton with 3.5% down. You gain location flexibility versus hunting USDA zones.
VA loans beat USDA if you're military-eligible. No funding fee for disabled vets and no income limits.
Conventional loans at 3% down cost less monthly. You drop mortgage insurance at 20% equity versus USDA's life-of-loan fee.
Community mortgages through some credit unions offer 3% down with flexible income documentation. Worth comparing against USDA restrictions.
Compton's urban development density disqualifies most addresses. USDA targets areas with under 35,000 population.
Neighboring cities like Lakewood or Paramount may have eligible pockets. Expand your search radius if USDA is priority.
Property condition matters more with USDA than conventional. Peeling paint or roof damage fails inspection.
Seller concessions help cover closing costs. USDA allows up to 6% versus FHA's 3% cap on seller contributions.
Most Compton addresses don't qualify due to urban density. Check USDA's eligibility map at eligibility.sc.egov.usda.gov before searching properties.
Most lenders require 640 minimum. Some accept 620 with strong compensating factors like large cash reserves or low debt ratios.
FHA works anywhere with 3.5% down. USDA offers zero down but only in eligible suburban zones, which excludes most of Compton.
Limits vary by household size and specific location. A family of four typically maxes around $103,500 in most LA County eligible areas.
Expect 45-60 days minimum. USDA adds government underwriting review that conventional and FHA loans don't require.
No. USDA requires properties in move-in condition with no safety hazards, structural issues, or deferred maintenance.