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in Long Beach, CA
Long Beach sits entirely within urbanized Los Angeles County, which disqualifies nearly every property from USDA financing. FHA loans dominate the government-backed market here because they work for condos, single-family homes, and multi-unit properties across the city.
USDA requires eligible rural or suburban locations based on census data. Long Beach doesn't meet those requirements. FHA loans offer the only viable government-backed option for most buyers in this coastal market.
FHA loans require 3.5% down with credit scores as low as 580. You'll pay an upfront mortgage insurance premium of 1.75% plus annual premiums that range from 0.55% to 1.05% depending on loan amount and down payment.
These loans cap borrowing at $644,000 in Long Beach for single-family homes. They allow higher debt ratios than conventional loans, making them useful for buyers with student loans or car payments. Sellers can contribute up to 6% toward closing costs.
USDA loans offer zero down payment financing for properties in eligible rural and suburban areas. Borrowers pay a 1% upfront guarantee fee plus 0.35% annual fee, which is lower than FHA's ongoing insurance costs.
Income limits apply based on household size and county medians. These loans don't work in densely populated urban centers. Long Beach falls outside USDA-eligible zones, so this option isn't available for properties within city limits.
The biggest difference is location eligibility. FHA works anywhere in Long Beach. USDA requires rural or suburban designation, which excludes this entire coastal city.
Down payment comes next. FHA needs 3.5% minimum. USDA allows zero down in eligible areas. Mortgage insurance costs favor USDA when available, but that advantage doesn't matter if the property doesn't qualify.
Choose FHA if you're buying in Long Beach. The city's urban density disqualifies it from USDA maps. FHA gives you access to government-backed financing with low down payments and flexible credit requirements.
USDA only works if you're willing to buy outside the city in qualifying areas of Los Angeles County or neighboring counties. Check the USDA eligibility map before falling in love with a property. Most buyers in this market end up with FHA or conventional loans.
No. Long Beach is an urbanized area that doesn't meet USDA rural or suburban eligibility requirements. FHA loans are the government-backed alternative here.
USDA charges 0.35% annually versus FHA's 0.55%-1.05%. But USDA isn't available in Long Beach, so FHA is your only government option.
FHA accepts scores as low as 580 with 3.5% down. USDA typically requires 640+ for automated approvals, though exceptions exist.
Yes, if the condo project is FHA-approved. USDA doesn't finance condos even in eligible areas.
No. FHA has no income caps. USDA restricts eligibility based on area median income and household size.