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in Lomita, CA
Lomita sits in a gray zone for USDA eligibility — parts qualify, but most neighborhoods don't. FHA works anywhere in the city with just 3.5% down.
Both loans let you buy with minimal cash upfront. The big difference: USDA requires zero down but limits where and who qualifies.
FHA loans need 3.5% down and accept credit scores down to 580. You pay an upfront mortgage insurance premium plus monthly MI for the loan's life.
These loans work on any property type in Lomita — single-family homes, condos, multi-units up to four. No income caps restrict who can apply.
Sellers can contribute up to 6% toward your closing costs. That helps if you're cash-tight but have enough saved for the down payment.
USDA loans require zero down payment but restrict where you can buy. Check the USDA eligibility map — some Lomita properties qualify, many don't.
Income limits cap household earnings at around $103,500 for most families in Los Angeles County. You need at least 640 credit to get approved.
Monthly mortgage insurance costs less than FHA. The upfront guarantee fee gets rolled into your loan amount, so you don't pay it at closing.
Down payment separates these loans first. USDA asks for nothing upfront while FHA wants 3.5%. That's about $21,000 on a $600,000 home.
USDA restricts your property location and household income. FHA doesn't care where you buy in Lomita or how much you earn, as long as you can afford the payment.
Mortgage insurance tilts toward USDA long-term. FHA's monthly MI runs higher and never drops off. USDA's annual fee is lower and can be removed after enough equity builds.
Pick USDA if you're buying in an eligible zone and your household income falls under the limit. Zero down beats 3.5% down when you qualify for both.
Choose FHA if the property you want sits outside USDA boundaries or your income exceeds the cap. Most Lomita homes fall into FHA territory anyway.
Credit below 640 pushes you toward FHA automatically. USDA lenders won't touch scores under that threshold, while FHA approves at 580.
No. USDA restricts loans to designated rural and suburban zones. Check the USDA eligibility map — some Lomita areas qualify, but most residential neighborhoods don't.
USDA typically costs less monthly due to zero down payment and lower mortgage insurance. However, rates vary by borrower profile and market conditions.
Around $103,500 for most households. Limits adjust based on family size and can change annually when USDA updates guidelines.
Yes, if you put down less than 10%. The monthly premium stays for the loan's entire term unless you refinance into a conventional loan later.
USDA generally doesn't finance condos. The program targets single-family homes in eligible rural areas, making FHA the better choice for Lomita condos.