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in Hawthorne, CA
Hawthorne sits in the heart of Los Angeles County, which means USDA loans are off the table for most properties here. This is a densely populated urban area, and USDA only backs mortgages in qualifying rural and suburban zones.
FHA loans work anywhere in Hawthorne and across LA County. If you're shopping in this market, FHA is likely your only government-backed option unless you find a rare pocket that meets USDA's geographic criteria.
FHA loans require just 3.5% down if your credit score hits 580. You'll pay mortgage insurance for the life of the loan on most purchases, but the upfront barrier is lower than conventional financing.
Credit requirements flex down to 500 with 10% down, though most lenders set overlays higher. FHA works for condos, single-family homes, and multi-unit properties up to four units in any California city.
USDA loans offer zero down payment and no monthly mortgage insurance if you buy in an eligible rural area. Income limits apply—your household can't exceed 115% of the area median income for your county.
Properties must meet USDA's geographic requirements, which exclude urban centers and densely populated suburbs. In Los Angeles County, that rules out nearly everything except far outlying areas.
The biggest split is location. USDA draws hard boundaries around eligible areas, and Hawthorne doesn't make the cut. FHA has no geographic limits—you can buy anywhere the property meets basic safety and condition standards.
Down payment is the second major difference. USDA goes to zero while FHA needs 3.5% minimum. But USDA's income caps can disqualify higher earners, while FHA only cares that you can afford the payment.
For Hawthorne buyers, this isn't really a choice. The city's urban location disqualifies virtually all properties from USDA financing. You're looking at FHA if you want a government-backed loan with a low down payment.
If you're open to buying outside Hawthorne in a USDA-eligible zone and your income falls under the cap, zero down beats 3.5% down every time. But you'd need to shop in areas 30-40 miles from central LA County to find qualifying properties.
No. Hawthorne is an urban city in Los Angeles County and doesn't meet USDA's rural or suburban eligibility requirements.
USDA offers zero down. FHA requires 3.5% down with a 580 credit score or 10% down below 580.
FHA charges upfront and monthly mortgage insurance. USDA has an upfront guarantee fee but no monthly MI.
No. FHA only requires that your debt-to-income ratio shows you can afford the payment. USDA caps income at 115% of area median.
FHA approves condos if the building is on their approved list. USDA typically finances single-family homes only in eligible areas.