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in San Gabriel, CA
San Gabriel sits in a unique zone where both FHA and USDA loans can work, depending on the property location. Both offer ways into homeownership with minimal cash down, but they serve different borrower profiles.
FHA works anywhere in the city with 3.5% down. USDA requires zero down but only applies to eligible areas outside the urban core. Your address and income determine which path makes sense.
FHA loans require 3.5% down with a 580 credit score, or 10% down if your score sits between 500-579. You'll pay upfront mortgage insurance at closing plus monthly premiums for the loan's life in most cases.
These loans work on any property type that meets FHA standards — single-family homes, condos, townhouses. No geographic restrictions in San Gabriel. Income can be any amount as long as your debt ratios work.
USDA loans eliminate the down payment entirely if you buy in an eligible rural or suburban zone. San Gabriel has pockets that qualify, typically in less dense areas. You must verify the property address through USDA's mapping tool.
Income limits apply based on household size and county median income. Mortgage insurance costs less than FHA — a 1% upfront fee plus 0.35% annual premium. Credit requirements are flexible, though most lenders want 640 minimum.
The down payment gap is obvious — USDA saves you 3.5% upfront if the property qualifies. On a $700,000 home, that's $24,500 you keep in your pocket. But USDA's geographic restrictions cut out much of San Gabriel's housing stock.
Income limits are the other divider. USDA caps eligibility based on household earnings relative to county medians. FHA has no income ceiling. Mortgage insurance costs favor USDA long-term, but FHA's wider property eligibility often wins out in competitive markets.
Check the USDA eligibility map first. If your target property sits outside the eligible zone, FHA is your only low-down option. If the address qualifies and your income falls within limits, USDA beats FHA on cost.
FHA makes more sense when you need maximum flexibility on property type and location. It also works better if your income exceeds USDA caps or if you're buying a condo or multi-unit property. USDA wins purely on cash-to-close for eligible suburban buyers.
No. USDA restricts loans to designated rural and suburban zones. Most of central San Gabriel won't qualify, but some outer areas do.
USDA has cheaper mortgage insurance at 0.35% annual versus FHA's 0.55%-0.85%. Over time, USDA costs less if you qualify.
FHA approves many condos if the complex meets guidelines. USDA rarely works on condos due to property type restrictions.
Limits vary by household size and reset annually. A family of four typically caps around $110,000-$120,000 in Los Angeles County.
No. Both FHA and USDA require mortgage insurance for the life of the loan in most scenarios.