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in Irwindale, CA
Irwindale buyers choosing between FHA and USDA loans face a clear fork in the road. FHA loans work anywhere in the city with just 3.5% down, while USDA loans offer zero down but only in eligible zones.
Most Irwindale properties don't qualify for USDA financing because the program targets rural areas. Before you decide, check if your target property sits in an approved USDA zone—that answer shapes everything.
FHA loans accept borrowers with 580 credit scores and 3.5% down payment. You can buy any property type in Irwindale—single family, condo, or multi-unit up to four units.
Mortgage insurance runs higher than conventional loans but stays consistent for the loan's life. Sellers can contribute up to 6% toward your closing costs, and you can roll those MIP fees into the loan amount.
USDA loans eliminate the down payment entirely but restrict purchases to designated rural zones. Los Angeles County has limited USDA-eligible areas, and most Irwindale falls outside those boundaries.
Income limits cap eligibility based on household size—typically around $110,250 for a family of four in this area. No mortgage insurance exists, but USDA charges a 1% upfront guarantee fee and 0.35% annual fee.
Down payment splits these programs cleanly: FHA needs 3.5%, USDA needs nothing. But USDA's geographic and income restrictions disqualify most Irwindale buyers before they start shopping.
FHA mortgage insurance costs more over time—you pay 0.85% annually plus 1.75% upfront. USDA charges 0.35% annually plus 1% upfront, saving you roughly $150 monthly on a $400,000 loan. FHA works with higher debt ratios and accepts most property types without location limits.
Run the USDA eligibility map first. If your target property sits outside approved zones or your income exceeds limits, FHA becomes your only government option at low down payment.
USDA wins on monthly costs when you qualify—lower fees mean smaller payments. FHA wins on flexibility—no income caps, no location restrictions, and faster closings since fewer properties need special approvals.
Most of Irwindale does not qualify for USDA financing. Check the USDA property eligibility map before assuming zero down is an option—most buyers need FHA instead.
USDA loans cost less monthly due to lower mortgage insurance—roughly 0.35% versus FHA's 0.85%. That difference saves about $150 monthly on a $400,000 loan.
FHA approves condos if the complex meets FHA requirements. USDA does not finance condos—single-family homes only in eligible zones.
FHA requires 580 for 3.5% down, 500 for 10% down. USDA typically wants 640 but accepts lower scores with compensating factors through manual underwriting.
Yes. FHA allows 100% gift funds for your 3.5% down payment. USDA requires zero down, so gifts only help with closing costs.