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in Industry, CA
Industry sits in an odd zone for USDA eligibility. Most of the city is too developed, pushing you toward FHA if you need a low down payment option.
Both programs help buyers who can't put 20% down. The real question is whether your property qualifies and which program's costs you can stomach long-term.
FHA lets you buy with 3.5% down if your credit is 580 or higher. You'll pay an upfront mortgage insurance premium of 1.75% plus monthly premiums that last 11 years or the loan's life.
These loans work anywhere in Industry. Lenders care about your credit and debt-to-income ratio, not the neighborhood or property location.
USDA requires zero down but only works in designated rural areas. Most of Industry doesn't qualify because it's too urbanized and close to major employment centers.
If you find an eligible property, you'll face income limits based on household size. Monthly guarantee fees run cheaper than FHA premiums, but the upfront fee is similar at 1%.
The biggest split is location. FHA works everywhere. USDA only covers specific rural-designated parcels, which are scarce in Industry.
USDA wins on down payment with zero required versus FHA's 3.5%. But USDA loses on restrictions—you'll hit income caps and property location requirements that don't exist with FHA.
For Industry buyers, FHA is the realistic choice. USDA eligibility is so limited here that most properties won't qualify under the rural designation rules.
If you somehow find a USDA-eligible property and your income fits, take it—zero down beats 3.5% down. Otherwise, FHA gives you flexible credit requirements and works on any approved property in the city.
No. USDA only covers designated rural areas, and most of Industry is too developed to qualify. Check the USDA eligibility map before house hunting.
USDA monthly guarantee fees run lower than FHA monthly premiums. But both charge upfront fees around 1-1.75% of the loan amount.
Only USDA caps your household income based on area median income. FHA has no income restrictions—you just need to qualify based on debt ratios.
FHA requires 580 minimum for 3.5% down. USDA typically wants 640+, though some lenders go lower with strong compensating factors.
With FHA, MIP lasts 11 years or the loan life depending on your down payment. USDA's guarantee fee stays until you refinance or pay off the loan.