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in South Gate, CA
South Gate buyers often choose between FHA and USDA loans when they need lower upfront costs. Both programs help first-time buyers, but they serve different property types and income brackets.
FHA works anywhere in South Gate with just 3.5% down. USDA requires zero down but limits where you can buy and what you can earn.
FHA loans let you buy any home in South Gate with 3.5% down if your credit score hits 580. You pay mortgage insurance for the loan's life, but you can refinance out of it later.
The program works for condos, single-family homes, and multi-units up to four units. FHA loan limits in Los Angeles County go up to $644,000 for a single-family home as of February 2026.
USDA loans require zero down payment, but South Gate sits within LA County's metro area. Most of the city won't qualify as rural under USDA's map, so you need to check property eligibility first.
If your property qualifies, you also need household income under USDA's limit for Los Angeles County. The program charges an annual fee that's lower than FHA's mortgage insurance.
FHA works everywhere in South Gate. USDA only works in USDA-designated rural areas, which excludes most urbanized LA County neighborhoods. Property location kills most USDA deals before you even look at income.
FHA requires 3.5% down while USDA requires nothing. But USDA caps your income and limits where you can buy. FHA has no income limit and works on any property type that meets condition standards.
USDA only makes sense if your target property sits in an eligible rural zone and your income stays under the county limit. In South Gate, that scenario is rare. Most buyers don't qualify for USDA based on location alone.
FHA works for nearly everyone who can scrape together 3.5% down. You pay more in mortgage insurance, but you can buy anywhere in the city and refinance to conventional once you hit 20% equity.
Most of South Gate sits in LA County's urbanized area, which disqualifies it under USDA's rural designation. Check USDA's eligibility map for specific addresses.
USDA's annual fee runs lower than FHA's mortgage insurance. But FHA's broader availability in South Gate makes it the realistic option for most buyers.
Yes. FHA covers properties up to four units as long as you live in one unit and the property meets condition standards.
FHA requires 580 for 3.5% down. USDA typically wants 640, though some lenders go lower with strong compensating factors.
USDA caps total household income based on family size and county median. In LA County, most households earning above moderate income exceed the limit.