Question 1

Can I use USDA loans in Monrovia city limits?

Accepted Answer

Most of central Monrovia doesn't qualify as USDA-eligible. Properties on the eastern edges near Bradbury may work, but you must verify each address on the USDA eligibility map.

Question 2

Which loan has lower monthly payments?

Accepted Answer

USDA typically costs less monthly due to zero down payment and lower annual fees. FHA requires 3.5% down but charges higher mortgage insurance premiums throughout the loan.

Question 3

Do both loans accept gift funds for down payment?

Accepted Answer

FHA accepts gift funds from family for the full 3.5% down payment. USDA requires zero down so gift funds aren't needed, though you can use them for closing costs.

Question 4

What credit score do I need for each program?

Accepted Answer

FHA accepts scores as low as 580 for 3.5% down or 500 with 10% down. USDA typically requires 640 minimum though some lenders go lower with compensating factors.

Question 5

Can I refinance from FHA to USDA later?

Accepted Answer

Only if your property sits in a USDA-eligible zone and you meet income limits at refinance time. Most Monrovia homes won't qualify for USDA regardless of when you apply.

FHA vs USDA Loans in Monrovia: Which Low Down Payment Option Fits Your Budget?