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in La Habra Heights, CA
La Habra Heights sits in an interesting zone for government loans. Most of this hillside community doesn't qualify for USDA financing because of its proximity to developed areas, but some properties on the edges might.
Both FHA and USDA loans offer pathways to homeownership with less money down than conventional mortgages. The real difference comes down to location eligibility and whether you can cover FHA's required down payment.
FHA loans require just 3.5% down with credit scores as low as 580. You'll pay an upfront mortgage insurance premium of 1.75% plus annual premiums of 0.55% to 0.85% for the life of most loans.
These loans work on any property type in La Habra Heights that meets FHA standards. Sellers can contribute up to 6% toward your closing costs, which helps buyers who have down payment funds but need help with fees.
USDA loans require zero down payment for eligible properties in designated rural areas. The catch in La Habra Heights is that most of the city doesn't qualify because USDA maps show it as too developed.
Properties that do qualify come with income limits based on household size. You'll pay a 1% upfront guarantee fee and 0.35% annual fee, which is cheaper than FHA insurance. The property must be your primary residence.
The biggest split is location. FHA works everywhere in La Habra Heights. USDA only covers properties in zones USDA designates as rural, which excludes most of this city.
Down payment separates them too. USDA needs nothing down if you qualify. FHA requires 3.5% minimum. On a $700,000 home, that's $24,500 out of pocket for FHA versus zero for USDA. FHA mortgage insurance costs more over time, but USDA income limits can disqualify higher earners.
Start by checking USDA eligibility maps for your target property. If the address doesn't qualify, FHA is your government loan option. If it does qualify, compare your household income against USDA limits for Los Angeles County.
Choose USDA when you have zero down payment funds and the property location works. Pick FHA when you're outside USDA zones, exceed income limits, or want more flexibility on property type. We check both options for every La Habra Heights buyer who qualifies.
Some properties on the city's edges may qualify, but most of La Habra Heights is designated as too developed. We check USDA eligibility maps for your specific address before pursuing this option.
USDA typically costs less monthly because of zero down payment and lower insurance fees. On equivalent loans, USDA payments run $150-300 less per month than FHA.
Neither works for investment properties. Both FHA and USDA require the home to be your primary residence within 60 days of closing.
Limits vary by household size and change annually. Current LA County limits range from $110,650 for 1-4 people to higher amounts for larger households.
FHA typically closes in 30-40 days. USDA adds time for rural eligibility verification and can take 45-60 days depending on USDA processing backlogs.