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in Walnut, CA
Walnut buyers looking to minimize upfront cash have two government-backed options. FHA loans require just 3.5% down, while USDA loans need zero down—but only if you qualify.
The catch: USDA eligibility depends on income limits and property location. Most of Walnut sits outside USDA-eligible zones, making FHA the default choice for many.
FHA loans accept credit scores as low as 580 with 3.5% down. You'll pay mortgage insurance for the life of the loan unless you put down 10% or more.
These loans work anywhere in Walnut regardless of income or property location. Sellers see them as reliable because they close consistently.
USDA loans eliminate the down payment entirely. You'll still pay a 1% upfront guarantee fee and 0.35% annual fee, but no mortgage insurance.
Eligibility requires meeting income limits based on household size. Properties must be in USDA-designated rural or suburban areas—most of Walnut doesn't qualify.
Down payment separates these loans most. USDA wins on upfront cash—$0 versus 3.5%. But FHA works on any Walnut property while USDA restricts location.
Income matters only for USDA. FHA has no income cap. Credit flexibility tilts to FHA—USDA typically wants 640+ scores despite no official minimum.
USDA only works if your target property sits in an eligible zone and your income falls within limits. Check USDA's eligibility map before getting attached to this option.
FHA makes sense for most Walnut buyers needing low down payments. You'll pay more in monthly insurance, but you get location flexibility and easier approval.
If you somehow find a USDA-eligible property in Walnut and meet income limits, the zero-down feature beats FHA. Just know those properties are rare here.
No. Most of Walnut doesn't qualify as USDA-eligible. Check the USDA property eligibility map—eligible areas are extremely limited in Los Angeles County.
USDA typically costs less monthly due to lower guarantee fees versus FHA mortgage insurance. Rates vary by borrower profile and market conditions.
FHA officially accepts 580+ with 3.5% down. USDA has no minimum but most lenders want 640+ for automated approval.
Yes. Both FHA and USDA allow gift funds from family members for down payment and closing costs with proper documentation.
Only if your home is in a USDA-eligible area and you meet income limits at refinance. Most Walnut homes won't qualify.