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in Gardena, CA
Most Gardena buyers assume FHA is their only government-backed option. USDA loans offer zero down payment, but Gardena's Los Angeles County location creates eligibility challenges most borrowers don't know about.
The difference between 3.5% down and zero down matters. Your credit score, where the property sits, and your household income determine which program actually works.
FHA loans work anywhere in Gardena with just 3.5% down and credit scores as low as 580. You'll pay mortgage insurance for the life of the loan unless you refinance later.
Sellers are used to FHA deals in this market. No income caps apply, so high earners qualify just like first-time buyers with modest salaries.
USDA loans offer zero down payment but require properties in USDA-eligible zones. Most of Gardena sits outside these boundaries because Los Angeles County is heavily urbanized.
You must meet strict household income limits based on area median income. Your total household income gets counted, not just borrowers on the loan.
The biggest split is location. FHA works on any Gardena property, USDA only covers specific zones that are rare in dense LA County markets.
Income matters for USDA but not FHA. USDA mortgage insurance costs less monthly and can be removed through refinance, while FHA insurance stays put unless you refinance to conventional.
Pick FHA if your property sits in central Gardena or your household income exceeds USDA limits. Most borrowers here end up with FHA because USDA geography doesn't cooperate.
Chase USDA if you found a property in an eligible zone and your household income stays under the cap. Zero down beats 3.5% down when you qualify for both.
Most of Gardena is ineligible because LA County is heavily urbanized. Check the USDA eligibility map with your exact property address before pursuing this option.
USDA typically offers lower mortgage insurance rates than FHA. But FHA's broader availability in Gardena makes it the practical choice for most buyers.
FHA approves condos on their approved list. USDA rarely works for condos since most sit in urban areas outside eligible zones.
FHA accepts 580+ credit scores. USDA lenders typically require 640+ though the program technically allows lower scores.
Neither program allows investment properties. Both require you to occupy the home as your primary residence.