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in Torrance, CA
Torrance sits squarely in urban Los Angeles County, which kills USDA eligibility for most properties here. FHA loans dominate the low down payment market because they work anywhere in the city.
USDA requires rural or suburban designation from their maps. Torrance doesn't qualify. If you're shopping in this city, FHA is your government-backed option unless you find a rare pocket near the county edge.
FHA lets you buy with 3.5% down if your credit hits 580. That's $17,500 on a $500,000 home. You'll pay mortgage insurance for the life of the loan unless you refinance out later.
Debt-to-income can stretch to 50% with strong credit. Sellers can cover up to 6% of closing costs. FHA works in every Torrance neighborhood from Old Torrance to the beaches.
USDA offers zero down payment for buyers in eligible rural areas. Income limits apply based on household size and county medians. Torrance doesn't meet USDA's location requirements.
Monthly mortgage insurance costs less than FHA. Rates typically run 0.25% lower. But the property must sit in a USDA-approved zone, which excludes this entire city.
Location eligibility separates these loans completely in Torrance. FHA works everywhere. USDA works nowhere here. That's the only comparison that matters for local buyers.
If you find property in nearby Gardena or unincorporated LA County pockets, USDA might appear on the map. Even then, FHA gives you more flexibility on income, credit, and property condition.
FHA is your only government-backed option in Torrance unless you're a veteran who qualifies for VA. USDA doesn't apply here. Focus your search on FHA lenders who know LA County.
If you're house hunting beyond Torrance into less dense areas, check USDA maps first. Zero down beats 3.5% down if you qualify. But in this city, FHA is the clear choice.
No. Torrance is too urban for USDA eligibility. The entire city falls outside USDA-approved zones as of February 2026.
580 gets you 3.5% down. Scores between 500-579 require 10% down. Most lenders prefer 620+ for smoother approvals.
USDA typically runs 0.25% lower with cheaper mortgage insurance. But it doesn't matter in Torrance where properties don't qualify.
Only through VA loans if you're a qualified veteran. USDA doesn't work here. FHA requires 3.5% minimum down.
FHA has no income caps. USDA limits household income to 115% of area median, which disqualifies many LA County buyers.