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in Hidden Hills, CA
Hidden Hills sits in an interesting spot for government loan eligibility. Most of this gated community won't qualify for USDA financing due to its location in greater Los Angeles, but understanding both options helps if you're looking at nearby areas.
FHA loans work anywhere in Hidden Hills with just 3.5% down. USDA loans require zero down but have strict geographic and income limits that eliminate most of this area from eligibility.
FHA loans let you buy with 3.5% down if your credit score hits 580. You'll pay upfront mortgage insurance of 1.75% plus annual premiums of 0.55% to 0.85% for the life of most loans.
These loans work in any neighborhood regardless of price or location. Debt-to-income ratios can stretch to 50% with compensating factors, making approval easier than conventional financing.
USDA loans require zero down payment but only work in USDA-designated rural areas. Most of Hidden Hills doesn't meet this definition, though some neighboring communities in northern Los Angeles County might qualify.
Income can't exceed 115% of area median income for the county. You need 640 minimum credit score and mortgage insurance of 0.35% annually, which is cheaper than FHA but still required.
Down payment separates these programs most clearly. FHA needs 3.5% while USDA needs nothing, but USDA's geographic restrictions eliminate most desirable Los Angeles County locations.
FHA charges higher mortgage insurance but works for higher earners and more expensive homes. USDA offers cheaper insurance and no down payment but caps both your income and where you can buy. For Hidden Hills specifically, FHA is your only option between these two.
If you're buying in Hidden Hills proper, FHA wins by default since USDA won't approve the location. Check the USDA eligibility map before assuming you can use either program in surrounding areas.
USDA makes sense only if you qualify by location and income, and you want to avoid any down payment. FHA works when you have some cash saved but need flexible credit standards. Most Hidden Hills buyers earn too much for USDA limits anyway.
No. Hidden Hills doesn't qualify as a USDA-eligible rural area. You'll need FHA, conventional, or another loan type for properties in this city.
USDA charges 0.35% annually versus FHA's 0.55% to 0.85%. But USDA's location limits make it unavailable for most Los Angeles County buyers.
FHA accepts 580 scores with 3.5% down. USDA requires minimum 640 credit, making FHA more flexible for credit-challenged borrowers.
USDA caps income at 115% of Los Angeles County median. Most Hidden Hills households exceed this limit even in eligible zones nearby.
No. Both FHA and USDA require mortgage insurance for the loan life in most cases. Conventional loans let you drop PMI at 20% equity.