Question 1

Can I use a USDA loan anywhere in Los Angeles County?

Accepted Answer

No. USDA excludes all coastal and urban areas in LA County. You'd need to buy in eligible inland zones like parts of Palmdale or Lancaster.

Question 2

Does FHA work for Redondo Beach condos?

Accepted Answer

Yes, if the condo project is FHA-approved. Many Redondo Beach complexes qualify, but check the approval list before making an offer.

Question 3

Which loan has lower mortgage insurance?

Accepted Answer

USDA costs less over time with its 0.35% annual fee. FHA charges 0.55% to 0.85% annually depending on loan size and down payment.

Question 4

What credit score do I need for each program?

Accepted Answer

FHA requires 580 minimum for 3.5% down. USDA lenders typically want 640 or higher despite no official floor.

Question 5

Can I avoid mortgage insurance with either loan?

Accepted Answer

No. FHA requires it unless you put down 10% and wait 11 years. USDA charges a guarantee fee on every loan.

FHA vs USDA Loans in Redondo Beach: Which Government Loan Works for Coastal Living?