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in San Fernando, CA
Both FHA and USDA loans help buyers get into homes with less money down than conventional financing requires. The catch: San Fernando sits in Los Angeles County, which means USDA eligibility is extremely limited here.
FHA works almost anywhere, including urban San Fernando. USDA only covers rural and suburban areas that don't meet HUD's definition of urban—most of San Fernando won't qualify. Check the USDA eligibility map before you assume zero down is an option.
FHA loans require 3.5% down with credit scores as low as 580. You pay an upfront mortgage insurance premium of 1.75% plus monthly MI that doesn't drop off. Rates run slightly higher than conventional, but approval is easier.
Debt-to-income can stretch to 50% with strong credit. Gift funds and down payment assistance count toward your 3.5%. FHA works in every neighborhood in San Fernando—no property location restrictions.
USDA loans require zero down payment but you must buy in an eligible rural area. Los Angeles County has very few qualifying zones. Income can't exceed 115% of area median—around $110,000 for a family of four in this region.
You pay a 1% upfront guarantee fee and 0.35% annual fee. Credit requirements are flexible, often approving scores in the 620 range. Processing takes longer than FHA because USDA reviews every file twice—expect 45 to 60 days.
FHA lets you buy anywhere in San Fernando with 3.5% down. USDA needs zero down but restricts you to rural-designated zones, which barely exist in Los Angeles County. That's the deal-breaker for most local buyers.
FHA monthly MI is higher—around 0.55% to 0.80% of your loan amount annually. USDA charges just 0.35%. But USDA caps your income while FHA doesn't. If you earn over the USDA limit or can't find an eligible property, FHA is your only government option.
Check the USDA eligibility map first. If your target property doesn't qualify or your income exceeds the limit, FHA is your path. Most San Fernando buyers end up with FHA because the city is too urban for USDA.
If you do find a USDA-eligible property and meet the income cap, zero down beats 3.5% down. The lower annual mortgage insurance fee also saves you money every month. Just prepare for a slower close and stricter income documentation.
Most San Fernando properties don't qualify because the area is too urban. Check the USDA eligibility map—only a few outlying zones may work.
USDA charges 0.35% annually while FHA runs 0.55% to 0.80%. USDA saves money if you qualify, but FHA works for more properties.
FHA approves at 580, USDA typically at 620. Both allow lower scores with manual underwriting if your profile is strong.
Yes, USDA finances 100% of the purchase price. You still need cash for closing costs, inspections, and prepaid items.
FHA closes in 30 days on average. USDA takes 45 to 60 days because files get reviewed twice by the agency.