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in Hawaiian Gardens, CA
Both FHA and USDA loans help Hawaiian Gardens buyers get into homes with minimal cash down. The difference comes down to location, income, and how much you can put down.
FHA works anywhere in Hawaiian Gardens and requires just 3.5% down. USDA offers zero down but limits eligibility based on income and property location within the city.
FHA loans require 3.5% down with a 580 credit score, or 10% down if your score is 500-579. Mortgage insurance is mandatory—upfront (1.75% of loan amount) plus monthly premiums that last the life of the loan on most purchases.
You can use FHA for any property type in Hawaiian Gardens: single-family homes, condos, or multi-units up to fourplex. Income limits don't apply, but your debt-to-income ratio typically caps at 43-50% depending on compensating factors.
USDA loans offer zero down payment financing but require the property to be in a USDA-eligible zone. Parts of Hawaiian Gardens may qualify as eligible areas, but you'll need to verify the specific address through USDA mapping tools.
Income can't exceed 115% of the area median for Los Angeles County. USDA charges a 1% upfront guarantee fee and 0.35% annual fee—lower ongoing costs than FHA in most cases. Credit minimums are typically 640, though some lenders go to 580.
Down payment separates these immediately: FHA needs 3.5% minimum, USDA needs nothing. But USDA's eligibility restrictions eliminate most buyers—income caps and location limits don't apply to FHA at all.
Mortgage insurance costs diverge over time. FHA's monthly premium runs 0.55-0.80% annually and never drops off. USDA's 0.35% annual fee is cheaper, and you can potentially refinance out of it once you hit 20% equity.
Choose USDA if your Hawaiian Gardens property qualifies by location, your household income falls under the limit, and you have zero cash for a down payment. That's a narrow window—most buyers won't clear all three hurdles.
Pick FHA if you need certainty. It works on any property in the city, doesn't care about your income level, and only requires 3.5% down. You'll pay more in mortgage insurance long-term, but you won't get turned away because your address is 200 feet outside an eligible boundary.
No. USDA eligibility depends on specific zones within the city. You must check the exact property address on the USDA eligibility map before assuming it qualifies.
USDA. Its 0.35% annual fee costs less than FHA's 0.55-0.80% monthly premium, and USDA fees can be refinanced away once you build equity.
FHA yes, if the condo is on the FHA-approved list. USDA rarely approves condos—it's designed for single-family homes in eligible rural or suburban areas.
You're stuck with FHA or conventional at 3-5% down. USDA income limits are firm—no lender can waive them, regardless of other compensating factors.
Yes. FHA allows up to 6% seller concessions, USDA allows up to 6% as well. Both let sellers cover most of your upfront costs.