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in Rolling Hills, CA
Rolling Hills is one of Los Angeles County's most exclusive gated communities. Most homes here won't qualify for either FHA or USDA financing due to price and location restrictions.
If you're looking at rare lower-priced properties or exploring nearby areas, understanding these two government loan programs helps you choose the right path. Each offers low down payment options but serves different borrower profiles.
FHA loans require just 3.5% down with credit scores as low as 580. You can buy in any location that meets FHA loan limits—$1,149,825 for high-cost LA County in 2024.
These loans carry mortgage insurance for the life of the loan if you put down less than 10%. Upfront MIP costs 1.75% of your loan amount, plus annual premiums of 0.55% to 0.85% depending on your down payment and loan term.
FHA works well for first-time buyers with limited savings or credit challenges. Sellers can contribute up to 6% toward your closing costs, which helps stretch your available cash.
USDA loans require zero down payment but only work in USDA-eligible rural and suburban areas. Rolling Hills itself doesn't qualify—you'd need to look at outer LA County communities that meet USDA geography rules.
Income limits apply based on household size and county median income. For LA County, most buyers can't exceed roughly $115,500 for a household of four, though limits vary by exact location.
USDA charges a 1% upfront guarantee fee and 0.35% annual fee. These costs run lower than FHA mortgage insurance. The property must be your primary residence and meet USDA condition standards.
Location matters most here. FHA works anywhere in LA County within loan limits. USDA restricts you to specific suburban and rural zones—Rolling Hills doesn't qualify, so you'd shop in areas like Acton, Lake Hughes, or parts of the Santa Clarita Valley.
Down payment separates these programs clearly. USDA offers zero down, which beats FHA's 3.5% requirement. But USDA adds income caps that disqualify many LA County buyers who could otherwise afford a home.
Credit flexibility favors FHA. We've closed FHA loans with scores in the 580s. USDA typically wants 640 minimum, though some lenders go lower with compensating factors. FHA also allows higher debt ratios in many cases.
Choose FHA if you want location flexibility and can manage 3.5% down. It works for most LA County neighborhoods and doesn't cap your income. Credit scores below 640 make FHA your only government option between these two.
USDA makes sense if you have zero savings for a down payment and qualify both geographically and income-wise. You'll save on upfront costs but sacrifice location choice—Rolling Hills and most developed LA County areas won't work.
For actual Rolling Hills purchases, neither program typically applies. Homes here run well above government loan limits. You'd need conventional financing, jumbo loans, or significant cash to buy in this community.
No. Rolling Hills is not USDA-eligible due to its developed, non-rural character. You'd need FHA, conventional, or jumbo financing for properties here.
USDA runs cheaper with 0.35% annual fees versus FHA's 0.55% to 0.85%. USDA's 1% upfront fee also beats FHA's 1.75% upfront mortgage insurance premium.
FHA accepts scores as low as 580 officially. USDA typically requires 640 minimum, though some lenders consider lower scores with strong compensating factors.
Only USDA caps income, usually around $115,500 for a four-person household in LA County. FHA has no income restrictions regardless of household size.
No. Both FHA and USDA require the property to be your primary residence. You must move in within 60 days of closing and live there full-time.
FHA typically closes quicker with 30-45 day timelines. USDA can take 45-60 days due to additional rural eligibility verification and income documentation requirements.