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in West Covina, CA
West Covina sits in an interesting zone for government loans. You're suburban Los Angeles County, which complicates USDA eligibility but makes FHA a strong default.
Both loans help buyers who don't have 20% down. The real question is whether your property qualifies for USDA and if you meet income caps.
FHA loans require 3.5% down with credit scores as low as 580. You pay an upfront mortgage insurance premium of 1.75% plus annual premiums of 0.55-0.85% depending on your loan amount.
These loans work for primary residences anywhere in West Covina. Credit flexibility makes them popular for first-time buyers or anyone rebuilding credit after financial setbacks.
Loan limits in Los Angeles County are $644,000 for single-family homes. That covers most West Covina inventory, though you'll hit the ceiling on higher-end properties.
USDA loans offer zero down payment for eligible properties in designated rural and suburban areas. West Covina has mixed eligibility—some neighborhoods qualify, most don't.
You must meet income limits based on household size. For Los Angeles County, that's typically around $103,500 for a household of 1-4 people, though limits adjust annually.
No upfront down payment sounds great until you factor in the 1% upfront guarantee fee plus 0.35% annual fee. Still cheaper than FHA insurance, but USDA adds processing time and strict property requirements.
Location eligibility is the biggest split. FHA works everywhere in West Covina. USDA requires a property-by-property check against USDA maps, and most of West Covina doesn't qualify.
Down payment separates them next. USDA offers zero down, FHA needs 3.5%. But USDA's income caps eliminate many West Covina buyers who earn above the limit.
Processing speed favors FHA. USDA loans take 45-60 days minimum because of extra government review layers. FHA can close in 30 days with a competent lender.
Run the USDA eligibility check first. If your property doesn't qualify or your income exceeds limits, FHA is your answer. USDA only makes sense when both boxes check.
Even when USDA is available, consider the timeline. If you're competing against conventional buyers in West Covina, a 60-day USDA close kills most deals. FHA keeps you competitive.
For buyers stretching to afford West Covina, that zero down payment matters. But factor in whether you can handle closing costs and reserves without draining savings completely.
Some areas on the city's edges may qualify, but most of West Covina is too densely populated. Check the USDA property eligibility map with the exact address before proceeding.
USDA costs less—0.35% annually versus 0.55-0.85% for FHA. But USDA's 1% upfront fee and FHA's 1.75% upfront are close when you run the full payment comparison.
FHA yes, if the condo project is FHA-approved. USDA rarely approves condos, focusing instead on single-family homes in eligible rural zones.
FHA officially allows 580, though most lenders prefer 600+. USDA typically requires 640 minimum for automated approval, though manual underwriting can go lower.
USDA requires it for the life of the loan. FHA requires it permanently if you put down less than 10%, which covers most FHA borrowers.