Question 1

Can I use a USDA loan to buy in Hawthorne?

Accepted Answer

No. Hawthorne is an urban city in Los Angeles County and doesn't meet USDA's rural or suburban eligibility requirements.

Question 2

Which loan has a lower down payment?

Accepted Answer

USDA offers zero down. FHA requires 3.5% down with a 580 credit score or 10% down below 580.

Question 3

Do both loans require mortgage insurance?

Accepted Answer

FHA charges upfront and monthly mortgage insurance. USDA has an upfront guarantee fee but no monthly MI.

Question 4

Are there income limits for FHA loans?

Accepted Answer

No. FHA only requires that your debt-to-income ratio shows you can afford the payment. USDA caps income at 115% of area median.

Question 5

Can I buy a condo with either loan?

Accepted Answer

FHA approves condos if the building is on their approved list. USDA typically finances single-family homes only in eligible areas.

FHA vs USDA Loans in Hawthorne: Which Government Program Fits Your Budget?