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in Pomona, CA
Both FHA and USDA loans offer paths to homeownership with minimal cash upfront in Pomona. The main difference: FHA works almost anywhere, USDA requires eligible locations.
Most Pomona properties qualify for FHA financing. USDA eligibility depends on specific address and household income limits that change annually.
Rates vary by borrower profile and market conditions. Your credit score, debt ratio, and property location determine which program saves you more money.
FHA loans require just 3.5% down with credit scores as low as 580. You pay upfront mortgage insurance plus monthly premiums for the loan's life on most transactions.
These loans work for primary residences throughout Pomona with no income caps. Sellers can contribute up to 6% toward your closing costs.
FHA loan limits in Los Angeles County reach $644,000 for single-family homes in 2024. That covers most starter homes and condos in Pomona's market.
USDA loans require zero down payment if you meet income limits and buy in eligible areas. Not all Pomona addresses qualify—the USDA designates specific zones as rural or suburban.
You pay an upfront guarantee fee and annual fee, both lower than FHA insurance costs. Income caps apply based on household size and county limits.
USDA processing takes longer than FHA because the agency reviews income eligibility and property location. Expect 45-60 day closings minimum.
Down payment separates these loans first. FHA needs 3.5%, USDA needs nothing if you qualify on income and location.
FHA works anywhere in Pomona with no income limits. USDA restricts both where you can buy and how much you earn.
Mortgage insurance costs less with USDA over the loan's life. FHA charges higher premiums that never drop off on most loans originated after 2013.
Credit flexibility favors FHA slightly—we see approvals at 580 regularly. USDA typically wants 640 minimum, though exceptions exist for strong files.
Choose USDA if you have zero savings for down payment and the property sits in an eligible zone. Check income limits first—many Pomona households exceed them.
Pick FHA if you need to close quickly, want more property choices, or earn too much for USDA caps. The 3.5% down requirement beats saving 20% for conventional.
Run both options on your specific address. Some Pomona neighborhoods qualify for USDA, others don't. We check eligibility in minutes once you share the property address.
Budget matters more than loan type. Factor in monthly insurance costs—USDA saves money over time if you keep the loan past five years.
No. USDA designates specific zones as eligible based on population density. We verify your property address against current USDA maps before application.
USDA typically costs less monthly due to no down payment and lower insurance fees. FHA payments run higher because of premium rates and smaller loan amounts.
FHA approves many condo projects. USDA rarely works for condos—the program targets single-family homes in eligible rural and suburban zones.
FHA accepts 580 minimum with 3.5% down. USDA prefers 640 but considers lower scores with strong compensating factors like low debt ratios.
FHA closes in 30-40 days typically. USDA takes 45-60 days because of additional income verification and property eligibility reviews required by the agency.
Yes. FHA allows 6% seller concessions. USDA permits seller-paid costs too, which helps offset the zero down payment requirement for cash-strapped buyers.