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in Covina, CA
Covina sits in a unique position for government loan eligibility. Parts of the city qualify for USDA financing, while FHA works anywhere in Los Angeles County.
Both programs help buyers who can't hit conventional down payment requirements. The choice comes down to location, income, and how much cash you have saved.
FHA loans require 3.5% down with a 580 credit score. You pay mortgage insurance for the loan's life unless you refinance later.
Debt-to-income can stretch to 50% with strong compensating factors. Sellers can contribute up to 6% toward closing costs, which helps buyers preserve cash.
No income limits exist with FHA. You can buy a home at any price point, though Los Angeles County caps FHA loans at $644,000 for single-family properties.
USDA loans offer zero down payment in designated rural areas. Eastern Covina borders USDA-eligible zones, though most of the city falls outside the program.
You must meet income limits based on household size. For Los Angeles County, that cap sits around $109,250 for a family of four.
The property must be your primary residence in an approved rural area. USDA charges a 1% upfront guarantee fee and 0.35% annual fee, lower than FHA's mortgage insurance.
Location determines USDA eligibility before you look at any other factor. Most of Covina doesn't qualify, but properties near the eastern city limits sometimes do.
FHA requires cash for the down payment. USDA requires zero down but restricts who qualifies by income and where they can buy.
Both programs accept similar credit scores. USDA tends to price better when you qualify, thanks to lower mortgage insurance rates.
Check USDA eligibility first using the address you want to buy. If the property qualifies and your income falls under the limit, USDA saves you thousands at closing.
FHA makes sense when USDA doesn't work due to location or income. You need 3.5% down, but you can buy anywhere in Covina without hitting income caps.
I run both options when location allows. USDA wins on total cost when you qualify, but FHA approves faster and works with higher earners.
Some areas near eastern Covina borders may qualify. USDA updates eligible zones annually, so check the specific address through the USDA eligibility map.
USDA typically costs less monthly due to lower mortgage insurance. Zero down payment means you finance more principal, which can offset the insurance savings.
Yes. FHA has no income limits, making it the default choice for buyers who exceed USDA caps but still need low down payment options.
FHA typically closes in 30 days. USDA adds 7-10 days for rural development approval, pushing timelines to 35-40 days in most cases.
FHA approves more borrowers due to flexible location and no income limits. USDA offers better terms but restricts eligibility by geography and earnings.