Loading
in Santa Fe Springs, CA
Both FHA and USDA loans cut down payment barriers for Santa Fe Springs buyers. FHA needs 3.5% down while USDA offers zero down financing.
The catch: USDA has strict location and income rules. Most Santa Fe Springs properties qualify geographically, but you'll need to check income limits for Los Angeles County.
FHA loans work anywhere in Santa Fe Springs with any property type. You need 3.5% down with a 580 credit score, or 10% down if your score sits between 500-579.
Mortgage insurance runs higher than conventional loans. You'll pay 1.75% upfront plus 0.55%-0.85% annually depending on loan size and term.
Debt-to-income ratios stretch to 50% or higher with strong credit. Sellers can contribute up to 6% toward your closing costs.
USDA loans eliminate the down payment entirely. You finance 100% of the purchase price plus roll closing costs into the loan.
Income caps change yearly based on household size. For LA County, most families hit the limit around $103,500 for households of 1-4 people.
The property must sit in a USDA-eligible zone. Parts of Santa Fe Springs qualify, but you'll need to verify your specific address on the USDA map.
Location eligibility splits these loans. FHA works everywhere; USDA restricts to designated rural and suburban zones that the program deems less densely populated.
Income plays no role in FHA approval. USDA disqualifies higher earners even with perfect credit and steady employment.
Down payment is the obvious divide. FHA needs at least 3.5% in cash or gift funds. USDA finances the entire purchase.
Mortgage insurance costs less with USDA. FHA's annual premium runs 0.55%-0.85% while USDA charges 0.35% after a 1% upfront fee.
Choose USDA if your property sits in an eligible zone and your household income falls below county limits. The zero down structure and lower insurance costs beat FHA for qualified buyers.
Pick FHA if you earn too much for USDA, need to buy in a restricted area, or can't wait for USDA's slower processing. FHA also wins for credit scores below 640.
Run both scenarios with actual numbers. USDA's lower monthly costs compound over 30 years, but FHA's flexibility helps buyers who don't fit USDA's narrower box.
Not everywhere. Check the USDA eligibility map for your specific address. Some areas qualify as suburban zones while others don't meet program requirements.
USDA charges less annually at 0.35% versus FHA's 0.55%-0.85%. Over 30 years, USDA's lower insurance saves thousands despite the 1% upfront fee.
FHA accepts 580 for 3.5% down or 500-579 for 10% down. USDA typically requires 640 minimum, though some lenders approve lower scores manually.
No. FHA has no income caps. USDA restricts eligibility to households earning below area median income thresholds set by the program.
Yes. USDA allows you to finance closing costs above the purchase price. FHA requires you to pay costs separately or get seller concessions.