Loading
in La Verne, CA
La Verne sits in an unusual zone. Parts of the city qualify for USDA financing while others don't.
Both FHA and USDA loans beat conventional options for borrowers with limited down payment savings. Each has different trade-offs on upfront cash versus monthly costs.
FHA loans require just 3.5% down and accept credit scores as low as 580. You pay an upfront mortgage insurance premium of 1.75% plus annual premiums that stick around for the loan's life.
There's no income cap and no property location restriction. Every home in La Verne qualifies if it meets FHA appraisal standards.
Monthly mortgage insurance costs 0.55% to 0.85% annually depending on your down payment and loan size. On a $600,000 purchase that's $275 to $425 per month.
USDA loans offer zero down payment but only work in designated rural areas. Parts of La Verne qualify, mainly on the city's edges farther from the 210 corridor.
You must earn below 115% of area median income. For Los Angeles County that's roughly $126,000 for a household of four in 2024.
USDA charges a 1% upfront guarantee fee and 0.35% annual fee. Monthly cost on a $600,000 loan runs about $175, half what FHA charges.
FHA costs more monthly but works on any property. USDA saves you money each month but limits where you can buy and how much you can earn.
USDA eliminates your down payment entirely while FHA requires at least 3.5%. On a $600,000 home that's $21,000 upfront.
USDA processing takes longer because the property must be verified as eligible and your income documentation gets extra scrutiny. FHA moves faster with fewer eligibility hurdles.
Choose USDA if you're buying on La Verne's outskirts, have zero down payment funds, and earn under the income limit. The savings on mortgage insurance and upfront cash make it unbeatable.
Go FHA if you're looking citywide, earn over USDA limits, or need faster closing. The flexibility is worth the higher monthly cost for most borrowers.
Check USDA eligibility first. If your target property doesn't qualify or you earn too much, FHA becomes your best low-down-payment option by default.
Generally areas away from the central corridor qualify. Use the USDA eligibility map online with your target address before shopping.
No. Two-person household limit is around $115,000 in Los Angeles County. You'd need FHA or conventional financing instead.
Rates run similar between the two. USDA saves you money through lower mortgage insurance, not the base rate.
USDA adds 1-2 weeks for eligibility verification. FHA typically closes in 30 days, USDA in 45.
Not from FHA unless you put down 10% or more. USDA insurance stays for the loan life regardless of equity.