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in Cudahy, CA
Cudahy sits in an interesting spot for government loan eligibility. You can get FHA financing anywhere in the city, but USDA might not be available since Cudahy is considered part of the Los Angeles metro area.
Both loans help borrowers who don't have big down payments saved. The catch: USDA requires zero down but has strict location and income caps that often disqualify Cudahy properties.
FHA loans need just 3.5% down with credit scores as low as 580. You'll pay mortgage insurance for the life of the loan if you put down less than 10%, which most Cudahy buyers do.
Credit is more flexible than conventional loans. We get FHA approvals for borrowers with past bankruptcies or foreclosures, as long as enough time has passed and they've rebuilt.
USDA loans require zero down payment and offer competitive rates. The problem: Los Angeles County properties rarely qualify because USDA designates most areas as too urban.
Even if a Cudahy property somehow qualifies, you face strict income limits. A family of four can't earn more than about $111,000 in this county, which eliminates many dual-income households.
Down payment separates these loans first. FHA needs 3.5% while USDA needs nothing, but that advantage disappears if your Cudahy property sits outside USDA eligible zones.
FHA has no income limits. USDA caps your earnings based on household size. FHA mortgage insurance is higher and permanent with minimum down, while USDA charges less and can eventually drop off.
Most Cudahy buyers end up with FHA because USDA eligibility is slim to none in Los Angeles County. We check USDA maps first, but 95% of the time the property doesn't qualify.
If you somehow find a USDA-eligible Cudahy property and your income falls under the cap, take it. Zero down beats 3.5% down every time. Just know you'll likely be shopping FHA properties instead.
Very few if any. Cudahy is part of the dense LA metro area that USDA excludes. We check every address but rarely find qualifying properties here.
FHA accepts 580 for 3.5% down, 500 for 10% down. USDA typically wants 640 minimum, though some lenders go lower with strong compensating factors.
USDA usually costs less monthly due to no down payment and lower mortgage insurance. But this only matters if you can find an eligible Cudahy property.
FHA yes, if the condo project is FHA-approved. USDA rarely applies to condos even in eligible areas, and Cudahy condos almost certainly won't qualify.
No. FHA has no income limits at all. USDA caps household income around $111,000 for a family of four in Los Angeles County.