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in Sierra Madre, CA
Sierra Madre sits in Los Angeles County's high-cost area, where both FHA and USDA loans serve different buyer profiles. FHA works for those with modest savings and credit above 580.
USDA targets rural-eligible properties with zero down, but income limits apply. The 2026 FHA loan limit is $1,249,125.
FHA at 5.875% interest works for buyers with limited savings. The program requires just 3.5% down and accepts credit above 580.
FHA mortgage insurance (MIP) runs for life when down is less than 10%. At 10% or more down, MIP cancels after 11 years.
USDA loans offer zero down for eligible rural properties. Income limits apply, set per household size and county location.
USDA charges an annual fee of 0.35% of the loan balance. There's also a 1% upfront fee rolled into the loan.
FHA requires a down payment; USDA does not. For buyers with zero savings, USDA is the only path if the property qualifies and income fits.
FHA uses mortgage insurance (MIP) that may run for life. USDA uses an annual fee instead. Both add to your monthly cost.
Credit requirements split them sharply. FHA accepts 580+ FICO; USDA typically wants 620+. Below 600, FHA opens the door.
Choose FHA if you have some savings and credit between 580 and 620. You'll put down 3.5% to 10% and skip the rural-property requirement.
Choose USDA if you have zero down saved and the property qualifies as rural. Your household income must fit the county threshold.
No. FHA lets you put 3.5% down with MIP. USDA requires zero down with an annual fee. Conventional is the only path to skip insurance at 20% down.
On a $750,000 FHA loan at 5.875% (740 FICO, 96.5% LTV, priced 2026-06-15), principal and interest is $4,437. Add taxes, insurance, and MIP for your full payment.
Only if your property is in a USDA-eligible rural zone. Sierra Madre's urban core typically doesn't qualify. Check USDA's property map for your exact address.
FHA is stronger at 600 FICO. USDA typically wants 620+. FHA's 580+ floor opens more doors for buyers rebuilding credit.
Yes, if you choose USDA. The cap is set per household size and county location. Your household income must fall at or below the USDA threshold.