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in Culver City, CA
Culver City sits squarely in urban Los Angeles County, which immediately rules out USDA loans for most properties here. USDA financing requires eligible rural or suburban locations, and this city doesn't qualify.
FHA loans work anywhere in Culver City with just 3.5% down. If you're set on buying here, FHA is your government-backed option unless you find a rare pocket that somehow meets USDA rural designation.
FHA loans let you buy with 3.5% down if your credit score hits 580. Scores between 500-579 require 10% down, but most lenders set their own 580 minimum anyway.
You'll pay upfront mortgage insurance (1.75% of loan amount) plus annual premiums for the loan's life on most purchases. Debt-to-income can stretch to 50% with strong compensating factors, giving W-2 earners and self-employed borrowers flexibility.
USDA loans offer zero down payment financing in eligible rural and suburban areas. Income limits apply based on household size and county maximums, which disqualify higher earners.
No monthly mortgage insurance exists, but you pay a 1% upfront guarantee fee and 0.35% annual fee. Credit score minimums hit 640 at most lenders, though the program technically allows lower scores with manual underwriting.
Location is the dealbreaker. USDA doesn't work in urban Culver City, while FHA has no geographic restrictions in California.
FHA requires just 3.5% down but charges higher mortgage insurance. USDA needs zero down but limits who qualifies by income and where they can buy. For Culver City buyers, this comparison is academic since USDA won't apply.
Choose FHA if you're buying in Culver City. The urban location automatically disqualifies USDA financing for nearly every property.
USDA only makes sense if you're willing to look outside city limits in rural LA County or neighboring counties. Even then, you'll need to verify the specific address meets USDA eligibility and your income falls below program limits.
No. Culver City is urban Los Angeles County and doesn't meet USDA rural eligibility requirements.
Most lenders require 580 minimum for 3.5% down. Scores of 500-579 need 10% down but face limited lender options.
No. FHA loans have no income caps, only debt-to-income ratio requirements around 43-50%.
USDA has cheaper annual fees (0.35% vs FHA's 0.55-0.85%), but it won't work for Culver City properties.
Yes, if the condo project is FHA-approved. Check the FHA condo approval list before making offers.