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in South El Monte, CA
FHA and USDA loans both help buyers get into homes with minimal upfront cash. The biggest difference: FHA requires 3.5% down while USDA offers true zero down financing.
Your choice depends on where you're buying in South El Monte and your income level. USDA has strict location and income limits that FHA doesn't impose.
FHA loans let you put down as little as 3.5% with a credit score of 580 or higher. Scores between 500-579 still qualify with 10% down, which beats most conventional options.
You'll pay mortgage insurance for the life of the loan on most FHA mortgages. That's the trade-off for flexible credit and low down payment requirements that work in any neighborhood.
USDA loans require zero down payment if you meet income limits and buy in an eligible area. Parts of South El Monte may qualify, but you need to verify property location with USDA maps.
Income caps vary by household size and county. For Los Angeles County, most families must earn below a specific threshold to qualify, making this better for moderate-income buyers.
Location determines USDA eligibility while FHA works everywhere. USDA zones exclude most urban cores but may include suburban pockets of South El Monte.
FHA charges 1.75% upfront MIP plus annual premiums. USDA's upfront fee is 1% with lower annual premiums. Both add costs but USDA's ongoing insurance runs cheaper.
Pick USDA if you're buying in an eligible zone and your income falls below county limits. The zero down feature saves thousands upfront compared to FHA's 3.5%.
Choose FHA when the property doesn't qualify for USDA or you earn above income caps. FHA's wider credit tolerance also helps if your score sits between 580-640.
No. USDA restricts financing to eligible rural and suburban zones. Check the USDA property eligibility map to confirm your target address qualifies.
USDA carries lower annual mortgage insurance premiums than FHA. Both charge upfront fees, but USDA's ongoing costs run significantly less over the loan term.
Most USDA lenders want 640 credit minimum. FHA drops to 580 for 3.5% down and even accepts 500-579 scores with 10% down.
Limits vary by household size and adjust annually. Most families must earn below the moderate-income threshold set by USDA for the county.
Yes. FHA allows up to 6% seller concessions. USDA also permits seller-paid costs, helping reduce your cash needed at closing on either program.