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in Manhattan Beach, CA
Manhattan Beach sits firmly outside USDA eligibility zones. This coastal LA County city doesn't meet the rural or suburban criteria USDA loans require.
FHA loans dominate the government-backed market here for good reason. They work in any location and handle Manhattan Beach's price points better than USDA ever could.
FHA loans let you buy with 3.5% down if your credit score hits 580. You'll pay mortgage insurance for the loan's life, but approval odds beat conventional programs.
These loans cap at $1,149,825 in LA County for 2024. That covers many Manhattan Beach condos and smaller homes, though beachfront properties typically exceed FHA limits.
USDA loans offer zero down payment for qualifying rural and suburban areas. Manhattan Beach fails both tests - it's urban, coastal, and densely populated.
The USDA eligibility map excludes all of Manhattan Beach. No exceptions exist for individual properties or neighborhoods within city limits.
The defining difference is simple: FHA works in Manhattan Beach, USDA doesn't. Geography eliminates the comparison before you evaluate rates or requirements.
FHA requires 3.5% down and charges mortgage insurance. USDA would offer zero down with lower insurance costs, but location rules override those benefits here.
FHA is your only government-backed option in Manhattan Beach. The choice isn't FHA versus USDA - it's FHA versus conventional or other loan types.
If you're set on low down payment programs, compare FHA to conventional 3% down loans. Conventional drops mortgage insurance once you hit 20% equity and often costs less monthly.
No. The entire city falls outside USDA eligible zones. Every address in Manhattan Beach is classified as urban and ineligible.
FHA caps at $1,149,825 in Los Angeles County. This covers condos and smaller single-family homes but excludes most beachfront properties.
USDA typically costs less, but it's irrelevant here. Manhattan Beach location makes USDA impossible regardless of insurance savings.
You need 580 minimum for 3.5% down. Scores between 500-579 require 10% down instead.
VA loans offer zero down for veterans. Otherwise, you're looking at 3-3.5% minimum through FHA or conventional programs.