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in La Puente, CA
La Puente sits in an interesting zone for government-backed mortgages. Most of the city qualifies as urban under USDA maps, which limits USDA loan eligibility.
FHA loans work anywhere in La Puente with just 3.5% down. USDA loans require zero down but only work in specific eligible zones that can shift as the area develops.
FHA loans require 3.5% down with a 580 credit score, or 10% down if your score sits between 500-579. You pay upfront mortgage insurance of 1.75% plus annual premiums of 0.55% on most loans.
Debt-to-income can stretch to 50% with strong compensating factors. Sellers can contribute up to 6% toward your closing costs, which helps first-time buyers cover upfront expenses.
USDA loans require zero down payment but only work on properties in USDA-eligible zones. Income limits apply based on household size—typically around $110,000 for a family of four in Los Angeles County.
You pay a 1% upfront guarantee fee plus 0.35% annual fee, which runs lower than FHA's mortgage insurance. Credit score minimums vary by lender but most want 640 or higher.
The biggest split is down payment versus location. FHA needs 3.5% down but works anywhere. USDA needs nothing down but only works in eligible zones, and parts of La Puente don't qualify.
FHA accepts lower credit scores and has no income limits. USDA requires proof your household income falls below area thresholds. FHA's mortgage insurance costs more monthly but USDA's upfront and annual fees total less over the loan life.
Check USDA eligibility first if you have zero cash for down payment. If your property and income qualify, USDA saves you thousands upfront and costs less monthly than FHA.
Go FHA if you're outside eligible zones, earn above income limits, or need flexible credit standards. Most La Puente buyers end up on FHA because the city's proximity to central LA puts many neighborhoods outside USDA boundaries.
No. Most of La Puente is classified as urban and doesn't meet USDA's rural designation. We check eligibility by address before starting your application.
USDA typically costs less monthly due to no down payment and lower mortgage insurance. But only FHA works if your income exceeds USDA limits or the property sits outside eligible zones.
Yes. FHA allows 100% of your down payment to come from family gifts. USDA doesn't need down payment funds at all.
FHA goes as low as 580 for 3.5% down. USDA lenders typically want 640 minimum, though some accept lower scores with strong income and reserves.
FHA usually closes quicker. USDA adds time for income verification and property eligibility confirmation through their system.