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in Duarte, CA
Duarte sits in a unique spot where both FHA and USDA loans can work. FHA loans let you put down just 3.5% anywhere in the city. USDA loans offer zero down but only in eligible zones.
Most Duarte buyers assume they need a conventional loan with 20% down. These government programs open homeownership to W-2 earners with modest savings and credit in the 600s.
FHA loans work anywhere in Duarte with just 3.5% down and credit scores as low as 580. You'll pay an upfront mortgage insurance premium (1.75% of loan amount) plus annual MI that ranges from 0.45% to 1.05% depending on your down payment and loan term.
These loans cap your debt-to-income ratio at 50% in most cases. Sellers can cover up to 6% of closing costs. Gift funds from family count toward your down payment. FHA ignores property location but does require the home to meet basic safety standards.
USDA loans require zero down payment but only work in designated rural and suburban zones. Parts of Duarte qualify, typically areas toward the city's northern and eastern edges. You need to check eligibility by address using USDA's online map tool.
Income limits apply based on household size and county median income. For Los Angeles County, most families can't exceed roughly $103,500 for a household of 1-4 people. USDA charges a 1% upfront guarantee fee plus 0.35% annual fee. Credit scores usually need to hit 640 minimum.
The down payment gap is obvious: FHA needs 3.5%, USDA needs nothing. But USDA's income limits eliminate many dual-income households in Los Angeles County. FHA has no income ceiling, so high earners can use it if they want low down payment options.
Mortgage insurance costs less with USDA. The 0.35% annual fee beats FHA's 0.55%-0.85% for most borrowers. Property location matters more for USDA since only certain Duarte addresses qualify. FHA works on any approved property in the city limits.
Check USDA eligibility first. If your target property qualifies and your household income stays under the limit, USDA saves money long-term through lower insurance costs and zero down. You'll need clean credit around 640 and patience for slower underwriting.
Go FHA if you earn over USDA income limits, need to close faster, or want to buy in central Duarte where USDA doesn't apply. FHA also works better if your credit sits between 580-640 or your DTI pushes toward 50%. The 3.5% down payment is still far less than conventional 10-20%.
No. USDA restricts loans to designated rural and suburban zones. Parts of Duarte qualify, mainly toward northern and eastern edges. Check the USDA eligibility map by specific address before making offers.
USDA typically costs less monthly due to 0.35% annual mortgage insurance versus FHA's 0.55%-0.85%. On a $500K loan, that's roughly $1,000/year in savings with USDA.
All household income from anyone 18+ living in the home counts, even if they're not on the loan. This includes wages, bonuses, retirement income, and child support.
Yes. FHA allows sellers to cover up to 6% of closing costs. USDA allows up to 6% as well, which helps since you're putting zero down.
FHA usually closes 3-5 weeks from clear to close. USDA adds 2-4 weeks for additional government review and underwriting layers.