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in San Dimas, CA
San Dimas sits in a unique position where both FHA and USDA loans can work. Parts of the city qualify for USDA financing, while FHA loans work everywhere in town.
Most buyers focus on the down payment difference—3.5% for FHA versus zero for USDA. But eligibility requirements and long-term costs matter just as much when choosing between these programs.
FHA loans accept credit scores as low as 580 for the full 3.5% down program. You can get approved with a 500 score if you put down 10%, though most lenders set their own minimums around 580-600.
The catch is mortgage insurance. You pay an upfront premium of 1.75% (rolled into the loan) plus monthly premiums for the life of the loan. That monthly cost typically runs 0.55% to 0.85% annually on your loan amount.
FHA works anywhere in San Dimas with no income caps. This makes it the default option for buyers who earn too much for USDA or want properties outside USDA zones.
USDA offers zero down payment financing, but only for properties in designated rural areas. Parts of San Dimas qualify—typically areas on the edges of the city away from downtown LA.
You must meet income limits based on household size. For Los Angeles County, that's typically around $110,000 to $140,000 depending on how many people live in your home. USDA recalculates these limits annually.
USDA charges a 1% upfront fee and 0.35% annual premium. That annual cost is significantly lower than FHA, which saves hundreds monthly on a typical loan. Credit requirements run similar to FHA, usually 620 minimum.
The down payment gap is obvious—$0 versus 3.5%. On a $600,000 San Dimas home, that's $21,000 out of pocket for FHA versus nothing for USDA.
Mortgage insurance costs diverge significantly over time. USDA's 0.35% annual premium beats FHA's 0.55%-0.85% by a wide margin. On that same $600,000 loan, you save $100-$250 monthly with USDA.
Location and income create hard stops. If the property sits outside USDA zones or your household income exceeds limits, FHA becomes your only government-backed low-down option. Most of central San Dimas falls outside USDA boundaries.
Choose USDA if the property qualifies geographically and your income stays under the limit. The zero down payment and lower monthly insurance make it objectively better financially when you're eligible.
Go FHA when USDA doesn't work—wrong location, income too high, or the property type doesn't qualify. FHA also closes faster since it doesn't require rural eligibility verification. Rates vary by borrower profile and market conditions.
Areas on the city edges typically qualify, while central zones near downtown don't. Check the USDA eligibility map with your exact address before shopping.
No. Both programs require you to live in the home as your primary residence. You can't use either for rentals or second homes.
USDA caps household income around $110,000-$140,000 for Los Angeles County depending on family size. Your lender verifies this during pre-approval.
Rates run nearly identical between the programs. The real cost difference comes from mortgage insurance, where USDA costs substantially less monthly.
With USDA yes, once you hit 20% equity. FHA loans with 3.5% down require refinancing to conventional to drop mortgage insurance entirely.