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in El Monte, CA
Most El Monte buyers look at FHA first because they've heard about the low down payment. USDA loans actually require zero down but come with strict location and income limits that rule out many properties.
Both programs help borrowers who don't have 20% saved. The real question is whether you qualify for USDA's tougher requirements or need FHA's flexibility on property location.
FHA loans let you put down just 3.5% with a credit score as low as 580. You pay mortgage insurance for the life of the loan if you go minimum down, which adds about $200-300 monthly on a $500k purchase.
These loans work on any property type in El Monte — condos, townhomes, single-family homes. Sellers see FHA offers regularly and know they close reliably.
USDA loans require no down payment but restrict where you can buy and how much you earn. Most of El Monte doesn't qualify as a USDA-eligible area — you'd need to look at outlying parts of Los Angeles County.
Income limits cap household earnings around $103,500 for most Los Angeles County areas. You also pay a 1% upfront fee and annual mortgage insurance, though it's cheaper than FHA.
Location separates these programs immediately. FHA works anywhere in El Monte; USDA eliminates most properties before you even look at price. If the property sits in an ineligible zone, USDA is off the table.
USDA's zero down beats FHA's 3.5% if you qualify, but that income cap hits dual-income households fast. FHA has no income limit — you just need to afford the payment.
Check USDA's eligibility map first. If your target property qualifies and your household income falls under the limit, zero down saves you thousands upfront. Most El Monte buyers won't clear both hurdles.
FHA works when USDA doesn't — higher income, urban location, or you need to close fast. Expect to save 3.5% down and budget for higher monthly mortgage insurance compared to USDA.
No. Most of El Monte is ineligible because USDA targets rural and suburban areas. Check the USDA eligibility map before shopping.
USDA typically costs less monthly due to zero down payment and lower mortgage insurance. FHA requires 3.5% down and charges higher MIP.
Only USDA caps income around $103,500 for most Los Angeles County areas. FHA has no income ceiling.
FHA usually closes quicker because USDA requires additional rural eligibility and income verification. FHA averages 30-45 days to close.
No. Both FHA and USDA require mortgage insurance regardless of down payment. FHA's MIP is higher than USDA's annual fee.